Bitcoin surged towards the $74,000 mark as spot bitcoin exchange-traded funds (ETFs) recorded a historic milestone with over $1 billion in net inflows on Tuesday, according to data from BitMEX Research.
After a brief decline on Tuesday fueled by a $360 million liquidation event, Bitcoin rebounded, posting a 2.5% gain in 24 hours, propelling its price above $73,000 early Wednesday.
Spot BTC ETFs witnessed their highest-ever inflows in both bitcoin and dollar terms since their inception in January, marking a significant influx of institutional capital into the crypto market.
BitMEX Research data revealed that spot bitcoin ETFs garnered an impressive 14,706 BTC in net inflows, equivalent to over $1 billion, on Tuesday alone, surpassing the previous February record of $673 million. Notably, Blackrock led the inflows with a record $849 million, while Grayscale saw outflows of $79 million. The total inflows across BTC ETFs exceeded the $4 billion mark.
Market observers pointed out that the robust price action of Bitcoin suggested strong institutional buying interest, underscoring the growing influence of institutional investors in driving market activity and shaping Bitcoin's trajectory.