On March 5, the BlackRock iShares Bitcoin Trust (IBIT) exchange-traded fund (ETF) experienced its highest single-day inflows to date, totaling $788 million, surpassing the previous record of $612.1 million set on February 28.
This surge in inflows coincided with two significant milestones in the Bitcoin ecosystem: achieving an all-time high (ATH) of $69,324 on March 5 and witnessing a notable increase in spot Bitcoin ETF investments in the United States. On the day Bitcoin reached its peak, total inflows into Bitcoin ETFs amounted to $648.3 million, as reported by investment management firm Farside.
Among the 10 approved ETFs, only Grayscale Bitcoin Trust (GBTC) and Invesco Galaxy Bitcoin ETF experienced net outflows on March 5, with GBTC seeing outflows of $332.5 million and Invesco Galaxy Bitcoin ETF recording outflows of $14.2 million.
The substantial net inflows on March 5 were primarily driven by IBIT, with support from other ETFs such as Fidelity Wise Origin Bitcoin Fund ($125.6 million), Bitwise Bitcoin ETF ($3.7 million), ARK 21Shares Bitcoin ETF ($63.7 million), Franklin Bitcoin ETF ($3.6 million), VanEck Bitcoin Trust ETF ($3.5 million), and WisdomTree Bitcoin ETF ($6.6 million). In contrast, Valkyrie Bitcoin ETF reported zero inflows on that day.
Overall, the Bitcoin ETF ecosystem has seen remarkable net inflows totaling $8.5 billion to date, despite ongoing outflows from GBTC, which has witnessed cumulative outflows of $9.6 billion. Historical data underscores IBIT and Franklin Bitcoin ETF (FBTC) as the primary contributors to these inflows, both having consistently reported positive net inflows and never experiencing net outflows.
In contrast, GBTC's Bitcoin holdings have decreased by 33% since its conversion to the ETF format, from 620,000 BTC initially to approximately 420,680 BTC at present. U.S. spot Bitcoin ETFs have collectively facilitated trading volumes exceeding $10 billion, reflecting significant investor interest amid the ongoing bull market. Bloomberg ETF analyst Eric Balchunas noted in a published statement on March 5 that these figures present a positive outlook for an ETF that has been operational for less than two months.
