With a significant increase of almost 56% from the $673 million recorded on February 28, this was the largest single-day net inflow since the ETF's launch. It's interesting to note that Bitcoin ETFs have consistently outperformed the amount of newly produced Bitcoin, which may be one factor contributing to the substantial influx into these funds.
In a LinkedIn post, Clive Thompson, a former managing director of wealth management with experience in Swiss private banking, noted that the new Bitcoin ETFs had bought over 7,200 Bitcoins on March 11. The amount is in sharp contrast to the 900 Bitcoins that are mined on a daily basis. Thompson noted that the price of Bitcoin increased by 5% as a result of this mismatch between supply and demand.
In the dynamics of the market, he emphasized Genesis Holdings' importance. After declaring bankruptcy, Genesis Holdings started selling off its GBTC shares, which had an unintentional impact on the price of Bitcoin. Thompson stated that these sales, which started on February 28th, seemed to end on March 13th. He predicted that the conclusion of Genesis's GBTC share sales may have a big impact on the trajectory of Bitcoin prices, raising the possibility of a spike to all-time highs and increased interest in Bitcoin ETFs.
