Bitcoin ETF achieves unprecedented daily inflow of $243.5m, setting a new record
The ARK 21Shares Bitcoin ETF experienced an extraordinary surge in investments on March 28, reaching a total of $243.5 million. This marked a significant increase of over five times its usual daily intake, as the price of Bitcoin approached the $72,000 mark.
Insights from Farside Investors revealed that on March 27, the inflow into the ARK 21Shares Bitcoin ETF reached four times its average daily inflow of $43.9 million since its launch on January 11. This influx nearly tripled the previous day’s inflow of $73.6 million, surpassing the lack of inflow on March 25.
In comparison, Blackrock’s Bitcoin ETF (IBIT) saw an even more impressive inflow of $323.8 million in new investments. On the other hand, other Bitcoin ETFs such as Valkyrie Bitcoin ETF (BRRR), Invesco Galaxy Bitcoin ETF (BTCO), Franklin Bitcoin ETF (EZBC), and VanEck Bitcoin ETF (HODL) recorded lower inflows of $5.1 million, $4.8 million, $4 million, and $1.9 million respectively.
WisdomTree Bitcoin ETF (BTCW) and Fidelity Investments Bitcoin ETF (FBTC) reported more modest gains with inflows of $1.5 million each.
During this period, the price of Bitcoin reached a high of $71,670 but later dropped below the $69,000 level, ultimately settling at $69,698 by the end of the day. At present, Bitcoin is priced at $70,783 according to CoinMarketCap.
Cryptocurrency analysts have begun to discuss how the focus on Bitcoin’s immediate price movements may overshadow a more significant trend. A crypto analyst named Gumshoe shared with his 28,900 followers that the attention on daily price movements seems misplaced, considering the record inflows into Bitcoin ETFs.
Meanwhile, Bitwise’s Chief Investment Officer Matt Hougan pointed out that many professional investors are still restricted from purchasing Bitcoin ETFs, particularly in the UK where the regulatory environment is cautious towards cryptocurrencies. He suggests that the landscape for Bitcoin ETF investments will gradually evolve over the next few years through individual assessments.
As the significant inflows into Bitcoin ETFs indicate a growing institutional interest in cryptocurrency, ARK Invest’s CEO, Cathie Wood, has projected that Bitcoin’s price could potentially reach as high as $3.8 million due to its increasing role in the financial industry. Wood believes that the SEC’s cautious approach to institutional Bitcoin investments could inadvertently boost its price.
The launch of these financial products has sparked a surge in demand, breaking previous US ETF investment records and reigniting interest in Bitcoin, which these funds directly acquire and manage. Industry experts support Wood’s view that the upcoming Bitcoin halving event in April will lead to a supply shock, further strengthening the ongoing demand-driven price rally.
