The main reason for this price increase can be attributed to increased inflows to the BTC Spot ETF. As expected last week, Grayscale Bitcoin ETF (GBTC) was expected to decline after the first few weeks of trading. This prediction came true, and GBTC outflows showed a significant decline at the end of January and continued to decline until February.
Daily outflows from GBTC averaged approximately $500 million in the first two weeks after approval. However, over the past week, total outflows from GBTC amounted to approximately $415 million, which equates to an average of approximately $83 million per day. This means that outflows have decreased by nearly 85% compared to the first two weeks of trading.
The remarkable correlation between declining outflows from GBTC and upward price trends is evident when looking at the total daily inflows to the BTC Spot ETF. The significant decline in GBTC outflows began on January 26th and coincided with the beginning of consistent inflows into the BTC Spot ETF, resulting in the beginning of 11 consecutive days of net inflows, starting exactly on January 26th.
Furthermore, there is a strong correlation between the magnitude of inflows and the reduction in GBTC outflows. GBTC recorded cumulative outflows of $415 million last week, a significant decrease from the previous week, while the BTC Spot ETF recorded total net inflows of approximately $1.2 billion during the same period, marking its highest weekly inflows since its inception. did.
Some of the newly launched BTC ETFs include: Blackrock (IBIT) remains in the lead with assets under management (AUM) of approximately $4.2 billion, followed by Fidelity ETF (FBTC) with approximately $3.5 billion in AUM. Notably, the BTC ETF offered by Ark & 21 Shares (ARKB) currently boasts $1.02 billion in assets under management, making it the third ETF to surpass $1 billion in assets under management in the last week. Additionally, it is worth noting that last week was the first time we saw daily outflows from non-GBTC BTC ETFs. Specifically, the Galaxy and Invesco ETF (BTCO) experienced outflows of approximately $17.5 million on Friday.
Trading volumes continue to be very high, with cumulative trading volume of approximately $5.5 billion over the past week, equivalent to approximately $1.1 billion in daily trading volume. Since its establishment, the cumulative trading volume has reached $35.6 billion, with an average daily trading volume of approximately $1.7 billion.