Spot Bitcoin ETFs' Net Inflows Exceed $6 Billion, Led by BlackRock and Fidelity

Since their launch, spot Bitcoin exchange-traded funds (ETFs) have garnered over $6 billion in net inflows, with BlackRock's IBIT and Fidelity's FBTC taking the lead.

The SEC-approved Bitcoin spot ETF has attracted significant investment since its listing, accumulating a total net inflow of $6.03 billion

Spot Bitcoin ETFs, approved by the U.S. Securities and Exchange Commission (SEC) and launched on January 11, have seen substantial investment, attracting a total of $6.03 billion in net inflows. Notably, BlackRock's IBIT and Fidelity's FBTC have emerged as frontrunners in this surge of investments.

While IBIT has accumulated net flows exceeding $6 billion, FBTC has seen a total of $4.2 billion in net inflows. However, Grayscale's Bitcoin Trust (GBTC), the largest Bitcoin fund prior to its conversion into a spot Bitcoin ETF, experienced significant outflows, totaling over $7.4 billion.

The scale of Bitcoin ETF is expected to surpass that of gold ETF within two years, fueled by the annual growth of Bitcoin prices and a decline in gold prices

Analysts suggest that Bitcoin ETFs could surpass gold ETFs in assets under management. Research indicates that despite being less than two months old, Bitcoin ETFs have accumulated billions in assets, outpacing gold ETFs by over $8 billion. The report forecasts that Bitcoin ETFs could overtake gold ETFs in size within two years.During the period in which spot Bitcoin ETFs attracted over $6 billion in inflows, gold ETFs saw around $3.6 billion. Bitcoin's price has surged approximately 30% year-to-date, contrasting with gold's 1.5% drop over the same period. This discrepancy in performance may contribute to challenges for gold ETFs in maintaining their $90 billion in assets under management.

The rise in Bitcoin prices is influenced by the halving event, where mining rewards will be halved, increasing supply pressure and affecting market dynamics

Bitcoin's price surge is further fueled by its upcoming halving event, which will halve the coinbase reward miners receive per block found. This reduction from 6.25 BTC to 3.125 BTC adds pressure to the available supply, consequently impacting market dynamics. Presently, Bitcoin is trading at $57,000.