Bitcoin ETFs are attracting money like crazy

After Bitcoin broke through its all-time high, the single-day capital inflow scale of Bitcoin ETF also reached a new high, exceeding US$1 billion for the first time.

Since its listing on January 11, the Bitcoin ETF has been attracting gold rapidly. On Tuesday, single-day capital inflows into 10 Bitcoin ETFs hit a new high, exceeding $1 billion for the first time.

Among them, BlackRock's IBIT fund is the most popular, creating nearly $850 million in capital inflows that day, far exceeding the other nine ETFs. So far, IBIT has received more than US$11 billion in investment.

This speed of inflow fully reflects the market’s strong interest and demand for Bitcoin ETFs, and it also drives the price of spot Bitcoin higher. As of press time, the price of Bitcoin remains within the range of US$72,000-73,000, which is very close to the historical high of US$73,637.

The performance of the Bitcoin ETF market has exceeded the expectations of various experts, but it has also made some analysts a little uneasy. Currently, 10 ETFs hold more than 800,000 Bitcoins, accounting for 4% of the total theoretical supply of Bitcoin.

Analysts worry that if ETFs continue to absorb Bitcoin at a high rate, the Bitcoin market may experience a liquidity crisis, in which the available supply will not be able to satisfy the overwhelming outside world. needs.

Far beyond the top of expectations

CryptoQuant CEO Ki Young Ju posted on The number of Bitcoins held by U.S. entities is 1.5 million.

He warned that if the rate at which ETFs buy spot tokens continues, the market will see sellers in less than six months. Liquidity crisis and caused Bitcoin’s high price to exceed expectations.

He also pointed out that Bitcoin miners now appear to be moving Bitcoins onto the chain, which means they may have sold some of their holdings; but on the other hand The amount of Bitcoin held by major miners such as Marathon Digital and Riot Platforms appears to be still climbing.

In his opinion, this means that the Bitcoin bull market will continue unless the inflow of ETF funds slows down.

Currently, the cumulative assets under management of 10 Bitcoin ETFs exceed US$60 billion, of which BlackRock’s IBIT exceeds US$15 billion. The industry said that the fund It will soon be among the top 100 ETFs in terms of size.