Summary
TLDR: Nine Bitcoin ETFs broke volume records on February 26, with $2.4 billion in net inflows. BlackRock’s iShares Bitcoin ETF contributed around 55% of the total inflows. The growing popularity of Bitcoin ETFs could positively impact Bitcoin’s price as they are backed by actual Bitcoin. Before approval, there was speculation about whether the ETFs would be backed by the asset.
Key Points
1. Bitcoin ETF analyst Eric Balchunas noted record-high volumes in nine Bitcoin exchange-traded funds (ETFs) as Bitcoin’s price approached $55,000 USD.
2. Nine of the 11 recently launched spot Bitcoin ETFs achieved a record volume of $2.4 billion in net inflows within a 24-hour period, with BlackRock’s iShares Bitcoin ETF contributing around $1.3 billion.
3. The growing popularity of Bitcoin ETFs could positively impact Bitcoin’s price as the ETFs are backed by actual Bitcoin, with institutions offering the ETFs required to support the shares with real Bitcoin.