Institutional Giants Bet Big on Bitcoin: Who’s Dominating Institutional Purchases This Week?

The post Institutional Giants Bet Big on Bitcoin: Who’s Dominating Institutional Purchases This Week? appeared first on Coinpedia Fintech News

Spot Bitcoin ETFs are making waves in the crypto space, witnessing an exceptional increase in institutional adoption of Bitcoin. Meanwhile, a recent analysis highlights the substantial investments made by major players like BlackRock in Bitcoin within this week.

Bitcoin ETFs Gather 19,908 BTC

Recent data from Lookonchain, an on-chain analytics platform, reveals that Spot Bitcoin ETF issuers collectively acquired over 19,908 BTC (equivalent to $860 million) this week. 

Notably, this analysis didn’t include WisdomTree’s BTC purchases, hinting that the actual figure might be even higher when accounting for the asset manager’s contributions.

Additional insights from Arkham Intelligence shed light on WisdomTree’s Bitcoin fund, which added 74 BTC to its wallet address for the Spot Bitcoin ETF. In total, all Spot Bitcoin ETF issuers amassed nearly 20,000 BTC during the week, showcasing the growing institutional interest in Bitcoin.

Bitcoin ETFs Hold 3.3% of Circulating Supply

Lookonchain data indicates that Bitcoin ETFs now hold over 657,000 BTC (excluding WisdomTree), representing 3.3% of Bitcoin’s circulating supply. Bitwise’s Chief Investment Officer, Matt Hougan, highlighted the success of these funds, noting $1.7 billion inflows after just 14 trading days. Comparatively, Gold ETFs attracted $1.3 billion in a similar timeframe.

In a recent X post, Hougan emphasized that Spot Bitcoin ETFs attracted a remarkable $700 million in net inflows this week alone.

BlackRock Surpasses Grayscale

Bloomberg analyst James Seyffart reported that BlackRock’s IBIT has likely become the first ETF to outpace Grayscale’s GBTC in single-day trading volume. Despite Grayscale’s historical dominance, IBIT recorded $301 million in trading volume on February 1, edging past GBTC’s $290 million. 

Seyffart noted that while the total daily trading volume was somewhat subdued, all Spot Bitcoin ETFs collectively achieved $924 million in trading volume.

The rise of institutional buyers, especially BlackRock, signals a significant shift in the dynamics of the crypto market, with Spot Bitcoin ETFs gaining traction and reshaping daily trading patterns.