Top Institutions Purchase $860M Worth of Bitcoin in a Single Week; 3.3% Allocated to ETFs
Major institutional investors are showing a growing interest in Spot Bitcoin ETFs, leading to a significant increase in investments in this sector. Lookonchain, a leading on-chain analytics platform, has revealed that Spot Bitcoin ETF issuers have collectively acquired a staggering 19,908 BTC, equivalent to approximately $860 million, in just one week. It’s worth noting that this analysis does not include WisdomTree’s BTC purchases, which suggests that the actual figure could be even higher when considering the contributions from this asset manager.
According to Arkham Intelligence, WisdomTree’s Bitcoin fund also saw a boost of 74 BTC in its wallet address for the Spot Bitcoin ETF. When considering the cumulative result, it becomes clear that all Spot Bitcoin ETF issuers have acquired nearly 20,000 BTC in the past week, highlighting the growing institutional interest in Bitcoin.
Furthermore, Lookonchain’s data indicates that Bitcoin ETFs now hold over 657,000 BTC, excluding WisdomTree, which represents an impressive 3.3% of Bitcoin’s circulating supply. Matt Hougan, the Chief Investment Officer at Bitwise, points out the success of these funds, with $1.7 billion in inflows after just 14 trading days. In comparison, Gold ETFs attracted $1.3 billion in a similar timeframe.
Hougan also highlights that Spot Bitcoin ETFs have seen a remarkable $700 million in net inflows just this week, solidifying their position as a powerful investment avenue. This surge in institutional buyers, particularly BlackRock, marks a significant shift in the dynamics of the cryptocurrency market. Not only are Spot Bitcoin ETFs gaining popularity, but they are also reshaping daily trading patterns.
In a groundbreaking achievement, BlackRock’s IBIT has surpassed Grayscale’s GBTC in single-day trading volume. On February 1, IBIT recorded an impressive $301 million in trading volume, surpassing GBTC’s $290 million. Although the total daily trading volume was somewhat subdued, all Spot Bitcoin ETFs collectively achieved an impressive $924 million in trading volume.
The rise of institutional investors, particularly BlackRock, signals a significant change in the cryptocurrency market. Spot Bitcoin ETFs are not only gaining traction but also reshaping daily trading patterns.
Overall, the growing interest in Spot Bitcoin ETFs from institutional investors and the increasing investments in this sector highlight the significant impact and potential of these funds in the cryptocurrency market.