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Investors Flock Back to Bitcoin ETFs as Cryptocurrency Market Sees Recovery
Outflows Subside as Bitcoin Price Rises
The spot bitcoin exchange-traded funds (ETFs) in the U.S. saw a significant inflow of $94.3 million on the last day of February, marking the end of a eight-day streak of outflows. This comes as the cryptocurrency market, which had seen a sharp decline, began to show signs of recovery.
Largest Bitcoin ETF Sees Outflow
BlackRock’s iShares Bitcoin Trust (IBIT), the largest spot bitcoin ETF by assets under management, was one of the outliers that saw $244.6 million in outflows on Friday. In contrast, Fidelity’s FBTC and the ARK 21Shares Bitcoin ETF saw inflows of $176 million and $193.7 million, respectively.
Market Recovery
The recovery in the cryptocurrency market came as the price of bitcoin hit a low of $78,000 on February 28. However, the cryptocurrency has since risen 1.6% to trade at around $84,900. The broader CoinDesk 20 Index also rose 0.3% to 2,705.
Weekly Performance
Despite the recent recovery, the cryptocurrency market is still down by 12% over the past week. The CoinDesk 20 Index has fallen by 15.8% over the same period.
Spot ETFs
Spot bitcoin ETFs have been enduring a significant outflow streak since February 14, with a total outflow of $3.2 billion. On the other hand, spot ether ETFs have maintained an ongoing outflow streak, with $41.9 million leaving these funds.
Crypto Summit and BlackRock’s Allocation
The recent market recovery comes as the White House announced that U.S. President Donald Trump will host a crypto summit on March 7. Additionally, BlackRock, the world’s largest asset manager, has announced a 1% to 2% allocation of its spot bitcoin ETF to one of its model portfolios.
Conclusion
The recent inflows into spot bitcoin ETFs may indicate that investors are regaining confidence in the cryptocurrency market. The recovery in the market comes as the price of bitcoin and other cryptocurrencies have fallen to their lowest levels in months. However, it remains to be seen whether this is a short-term rebound or a sign of a more sustained recovery.
FAQs
Q: What is a spot bitcoin ETF?
A: A spot bitcoin ETF is an exchange-traded fund that tracks the price of bitcoin.
Q: What is the largest spot bitcoin ETF?
A: The largest spot bitcoin ETF is BlackRock’s iShares Bitcoin Trust (IBIT).
Q: What is the current price of bitcoin?
A: The current price of bitcoin is around $84,900.
Q: How has the cryptocurrency market performed over the past week?
A: The cryptocurrency market has fallen by 12% over the past week, with the CoinDesk 20 Index falling by 15.8%.
