- BofA report shows that crypto inflows surged to $2.4 billion this week, doubling from the previous week, fueled by increased interest in Bitcoin ETFs.
- Genesis obtained approval to sell 35 million GBTC shares worth $1.3 billion, which, along with substantial trading volumes on March 1.
On Friday, March 1, Bank of America Global Research published a report stating that investors exhibited heightened interest in both technology stocks and cryptocurrencies during the week leading up to Wednesday. Inflows into technology stocks, including major companies like Apple and Nvidia, reached $4.7 billion, marking the highest level since August and setting flows on course for a potential annual record of $98.8 billion, as per EPFR data cited by BofA.
Crypto inflows surged to $2.4 billion during the same period, doubling from the previous week’s $1.2 billion. Investors rushed into exchange-traded funds, contributing to this increase and propelling bitcoin’s price to nearly record highs around $69,000. As reported by Crypto News Flash, the recent rally in the crypto market has triggered renewed interest among Chinese investors despite the government ban.
This surge in investment comes amidst growing investor confidence that the U.S. Federal Reserve will reduce interest rates by mid-year, coupled with a resilient economy. This optimism has further spurred a fresh influx of funds into higher-risk assets. In their report, BofA said: “Fed cuts are sparking ‘animal spirits’ and a push into riskier assets”.
Bitcoin ETFs Lead the Show
During the latter half of February, spot bitcoin exchange-traded funds experienced a significant influx of funds. This surge in investment contributed to Bitcoin achieving its most robust monthly gain since December 2020, with a rise of 45%. Similarly, ether, a smaller cryptocurrency, saw its largest monthly increase since mid-2022, rising by 47% to nearly $3,500.
According to data from LSEG, investors allocated $6.21 billion into the top 10 largest spot Bitcoin ETFs in February, with $4.18 billion invested in the latter half of the month.
Despite significant inflows reported by BlackRock, spot Bitcoin ETFs experienced negative net flows on Friday, March 1. The Genesis and Gemini situation, along with the growing outflow rate of GBTC, contributed to this decline. However, the overall week proved to be positive for Bitcoin ETFs, with a net inflow of $1.7 billion.
In related news, last month, crypto lender Genesis obtained bankruptcy court approval to sell 35 million GBTC shares valued at $1.3 billion. As reported by Crypto News Flash, the GBTC selling has also put some pressure on the Bitcoin price.
On March 1, spot Bitcoin ETFs witnessed substantial trading volumes. Eric Balchunas, a senior ETF analyst at Bloomberg, highlighted this, stating that it was the “third-biggest day ever” on Wednesday and Thursday. He noted that a total of $22 billion was traded throughout the week, equivalent to about a month’s worth of volume in just five days. Balchunas also speculated on the possibility of inflows diminishing in the coming days. Furthermore, as Crypto News Flash reported, JPMorgan also expects the BTC price rally to halt, as the hype around Bitcoin halving cools down.
