These companies bought $13.70 billion in Bitcoin (BTC) in one month

A group of companies have raised an astonishing $13.70 billion in Bitcoin (BTC). This is a significant milestone in the cryptocurrency market.

The huge stock reflects growing confidence in Bitcoin as a viable investment. It also reflects the recent rise in prices and increasing popularity among institutional investors.

ETF issuers buy $13.70 billion in BTC

The spotlight shines brightly on Bitcoin exchange-traded funds (ETFs). These financial products experienced strong capital inflows of over $2.2 billion between February 12 and February 16. This increase in investment puts Bitcoin ETFs ahead of the 3,400 ETFs in the United States.

Bloomberg analyst Eric Balchunas highlighted the dominance of these flows. In particular, BlackRock's iShares Bitcoin Trust (IBIT) alone saw $1.6 billion in revenue in a week.

Of the top 10 Bitcoin ETFs… IBIT alone was No. 2, earning over $2.3 billion in revenue last week. This brings the total net to over $5 billion, more than BlackRock has taken in as a whole. Throw that in and the numbers get even crazier,” Balchunas explained.

This is proof of the growing investor appetite for Bitcoin. Indeed, the significant entry into another popular space of Bitcoin ETFs is further evidence. For example, Fidelity's Wise Origin Bitcoin Fund and Ark 21Shares Bitcoin ETF have also seen significant capital injections, reflecting the divergent interest in Bitcoin investments.

Despite optimistic inflows, the Greyscale Bitcoin Trust experienced outflows of $624 million. However, since the spot Bitcoin ETF was approved by the US Securities and Exchange Commission (SEC), the overall narrative remains bullish.

This regulatory nudge boosted the price of Bitcoin, which has been rising by 95% over the past six months, reflecting the positive market sentiment for cryptocurrencies.

Read more: Bitcoin price prediction for 2024/2025/2030

Bitcoin's resurgence in appeal isn't limited to ETFs. Major banks and financial institutions actively monitor the market. Some argue for regulatory adjustments to accommodate the growing demand for Bitcoin custodianship. This reflects the wider recognition of Bitcoin's potential to redefine investment portfolios and its role as a modern asset class.

Investors Offload Gold ETF Holdings

Bitcoin's rise is reflected in its comparative performance to traditional securities such as gold. The digital currency's 23 percent year-to-date rise contrasts sharply with gold's modest decline. Thus, it highlights the preference of investors to switch to digital assets.

This shift reflects higher inflows from gold ETFs, a trend that contrasts sharply with last year's inflows.

“Right now it's a very bad scene in the gold ETFs category. Certainly, I don't think these people will migrate to Bitcoin ETFs, maybe even a little bit, instead we equity FOMO, although in light of the new eco data, Balchunas emphasized.

A collection of companies including BlackRock, Fidelity, Arch/21 Shares and Bitwise marks a pivotal moment in financial markets. With a total holding of 263,526.06 BTC, these entities are pioneers in the financial revolution.

As Bitcoin continues to challenge traditional investment paradigms, its acceptance by institutional investors ushers in a new era of digital asset integration into mainstream financial portfolios.