Is Bitcoin The New Gold? Bitcoin ETFs Reach Unprecedented $1B One-Day Inflows

In a landmark day for Bitcoin BTC/USD investment products, the total net inflow into Bitcoin spot exchange-traded funds (ETFs) reached an unprecedented $1.05 billion on March 12.

What Happened: This surge set a new record for the highest single-day net inflow since these ETFs were first introduced to the market, marking a significant increase of approximately 56% from the $673 million net inflow recorded on Feb. 28, according to data from SoSoValue.

Among the beneficiaries of this remarkable influx of capital, Blackrock's IBIT IBIT product stood out, capturing a record $849 million inflow, according to BitMEX Research.

This milestone comes just after the product surpassed 200,000 BTC in assets under management earlier in the week, underscoring the growing investor confidence in Bitcoin as a viable asset class.

The surge in spot ETF investments has notably shifted the landscape of Bitcoin-related ETFs.

As of the latest data, spot Bitcoin ETFs now command over 90% of the daily trading volume market share for ETFs offering exposure to Bitcoin.

Also Read: White House Secretly Bullish On Bitcoin? Crypto Analyst Makes Bold Claim Based On 2025 Budget But Gets Community-Noted

This figure represents an all-time high and signifies a substantial preference among investors for spot ETFs over their futures counterparts, which now hold a mere 10% of the market share.

The increasing investor interest in Bitcoin is further evidenced by the record highs reached in Bitcoin contract open interest.

SoSo Value reports that Bitcoin contract holdings have soared to $33.94 billion, surpassing the previous high of $23.04 billion in November 2021.

Additionally, the funding rates for Bitcoin on major cryptocurrency exchanges, including Binance and OKX, have achieved new peaks since the beginning of 2023, indicating a bullish sentiment among traders.

Price Action: At the time of writing, Bitcoin was trading at $72,930, up 1.1% over the past 24 hours, as reported by Benzinga Pro.

Read Next: Unlocking the Vault: Grayscale's 'Spin-Off' Bitcoin ETF Breakdown

Image created using artificial intelligence with Midjourney.