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Breaking News: US Bitcoin ETFs Experience Back-to-Back Days of $1B+ Inflows – A Historic Milestone!

Overview

The US market has been abuzz with excitement as spot Bitcoin exchange-traded funds (ETFs) have seen an unprecedented influx of over $1 billion for two consecutive days, marking a remarkable milestone since their launch in January 2024.

In a recent report, it was revealed that a total of 11 spot Bitcoin ETF products garnered a whopping $1.03 billion in inflows on Friday, following a significant $1.17 billion the day before. BlackRock’s IBIT emerged as the frontrunner in this surge, attracting an impressive $953 million on Friday alone.

This surge in inflows has caught the attention of industry experts, with Nate Geraci of NovaDius Wealth Management pointing out that since the inception of these ETFs, there have been only seven days where inflows exceeded $1 billion, two of which occurred in the past two days. This recent spike has surpassed the previous high of $1.07 billion back in January 2024.

Matt Hougan, Chief Investment Officer at Bitwise Invest, highlighted the discrepancy between the BTC produced by the Bitcoin network and the BTC purchased by spot Bitcoin ETFs. The demand for Bitcoin ETFs has been exceptionally high, with blockchain analytics firm Jan3 reporting that on Wednesday, the demand was 22 times greater than the daily mined supply.

However, there are concerns about the sustainability of such high demand, especially given the current price levels of Bitcoin. Samson Mow, CEO of Jan3, cautioned that the current demand might not be feasible in the long run, echoing sentiments shared by other analysts.

The recent surge in demand has led to a total of $2.72 billion in inflows over the past five trading days, driving Bitcoin‘s price to new all-time highs, with it peaking at $118,780 on Friday. This price rally contributed to BlackRock’s spot Bitcoin ETF (IBIT) surpassing $80 billion in assets under management on Thursday, making it the fastest ETF to reach this milestone in just 374 days.

As the total assets across all spot Bitcoin ETFs crossed $140 billion for the first time, it is evident that the market’s appetite for crypto investments is stronger than ever. This surge in demand not only reflects growing investor interest in the crypto space but also raises questions about the sustainability of such high inflows amidst fluctuating Bitcoin prices.

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