NEW YORK, February 17, 2024 — Bitcoin exchange-traded funds (ETFs) experienced a robust week, with net inflows exceeding $2.2 billion from February 12 to 16. According to Bloomberg analyst Eric Balchunas, this surge in investment represents the largest inflows recorded among the 3,400 ETFs available in the United States.

The majority of this capital flowed into BlackRock’s iShares Bitcoin Trust (IBIT), which attracted $1.6 billion over the week, as per data from BitMEX Research. Balchunas highlighted that IBIT has secured $5.2 billion year-to-date, making up 50% of BlackRock's total net ETF flows out of its 417 ETFs

Other notable performers include Fidelity’s Wise Origin Bitcoin Fund, which saw inflows of $648.5 million, and the Ark 21Shares Bitcoin ETF, which garnered $405 million. The Bitwise Bitcoin ETF also saw significant interest, with $232.1 million in inflows.

Despite the strong performance of these new ETFs, the Grayscale Bitcoin Trust is facing challenges, experiencing $624 million in outflows from February 12 to 16. Since converting from an over-the-counter product to a spot ETF on January 10, Grayscale’s fund has seen over $7 billion in withdrawals.

The approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) on January 10 is believed to be a contributing factor to Bitcoin's recent price increase. The cryptocurrency has surged 91% over the past four months and gained nearly 7% during the past week, trading at $51,434 and climbing 24% in February.

The new ETFs are also catching the attention of major financial institutions. On February 14, a coalition of trade groups representing Wall Street’s largest firms urged the SEC to amend Staff Accounting Bulletin 121. The proposed revision would enable banks to act as custodians for cryptocurrency funds, reflecting the growing institutional interest in Bitcoin ETFs.