Bitcoin posts record monthly gain, ETF inflows surge
Bitcoin, the world’s largest cryptocurrency by market capitalization, has recorded its most significant monthly gain in U.S. dollar terms, with a nearly $20,000 increase in February. This historic rise surpasses the previous record set in October 2021. The surge in Bitcoin’s value coincides with a record net inflow into U.S. spot Bitcoin exchange-traded funds (ETFs), with BlackRock’s IBIT spot Bitcoin ETF leading the charge. Analysts attribute the cryptocurrency’s price appreciation to reduced selling pressure from Grayscale’s converted GBTC fund and a favorable macroeconomic environment, suggesting a positive outlook for Bitcoin’s medium-term price action.
Bitcoin’s remarkable performance in February, with a closing gain approaching $20,000, marks the largest monthly increase for the digital asset, according to data from Coingecko. As of 10:42 a.m. ET, the green candlestick on Bitcoin’s price chart—a visual representation used by investors and analysts to analyze price movements—registered at $19,976. This milestone follows a significant net inflow into U.S. spot Bitcoin ETFs, with a record $673.4 million added on Wednesday, surpassing the previous high set on their launch day, January 11. BlackRock’s IBIT spot Bitcoin ETF was the primary beneficiary, with an addition of $612.1 million, as reported by BitMEX Research.
Jasper De Maere, Research Lead at Outlier Ventures, links the price increase to a decline in selling pressure from the Grayscale Bitcoin Trust (GBTC) and a strong month of institutional buying. Stijn Paumen, CEO of Helio, notes that Bitcoin’s current price is just 8% below its all-time high of over $68,000, reached in November 2021, with anticipation building ahead of the upcoming halving cycle—a periodic event that reduces the reward for mining new blocks, effectively limiting the supply of new Bitcoin.
Further data from BitMEX reveals that BlackRock’s IBIT experienced a significant inflow of $604 million, or roughly 10,000 BTC, bringing its total Bitcoin holdings to 161,378 BTC. Meanwhile, the Grayscale Bitcoin Trust saw its second-largest outflow since inception, with $599 million leaving the ETF. Despite this, the total net flows for all spot Bitcoin ETFs have reached a substantial $7.5 billion, equivalent to approximately 146,522 BTC.
The introduction of spot Bitcoin ETFs by major financial institutions like Bank of America’s Merrill Lynch and Wells Fargo has also contributed to the cryptocurrency’s acceptance and growth potential. Analysts from Bernstein and Bitwise’s Chief Investment Officer, Matt Hougan, predict a significant rise in Bitcoin’s price, potentially reaching between $100,000 and $200,000, driven by institutional adoption and the upcoming halving event. BlackRock Brazil is set to launch a Brazilian Depositary Receipts (BDR) ETF on March 1, mirroring its U.S. spot Bitcoin ETF and providing Brazilian investors with a regulated means to access Bitcoin.