These companies purchase $13.7 billion worth of Bitcoin (BTC) in one month.

Several companies have amassed a whopping $13.7 billion in Bitcoin (BTC). This marks an important milestone in the cryptocurrency market.

The large accumulation reflects growing confidence in Bitcoin as a viable investment. This also reflects the recent price surge and increased attractiveness among institutional investors.

ETF Issuer Purchases $13.7 Billion in BTC

Bitcoin exchange-traded funds (ETFs) are attracting attention. These financial instruments experienced strong capital inflows exceeding $2.2 billion between February 12 and February 16. This surge in investment has put the Bitcoin ETF ahead of 3,400 ETFs in the United States.

Bloomberg analyst Eric Balchunas emphasized that these inflows are absolutely dominant. He particularly focused on BlackRock’s iShares Bitcoin Trust (IBIT), which generated $1.6 billion in revenue during the week.

“Last week, 10 Bitcoin ETFs netted more than $2.3 billion. IBIT alone ranked second. This resulted in a total net profit of over $5 billion. That’s more than BlackRock as a whole has ever covered. Again, this is all net GBTC hemorrhage. If you throw it away, the numbers get even bigger,” Balchunas explained.

This is evidence that investor interest in Bitcoin is increasing. In fact, significant inflows into other major spot Bitcoin ETFs are further evidence of this. For example, Fidelity’s Wise Origin Bitcoin Fund and Ark 21Shares Bitcoin ETF also saw significant capital injections, reflecting the diverse interest in Bitcoin investments.

Despite optimistic inflows, Grayscale Bitcoin Trust suffered $624 million in outflows. However, the overall narrative remains optimistic after the U.S. Securities and Exchange Commission (SEC) approved a spot Bitcoin ETF.

The restrictions have led to a rise in the price of Bitcoin, which has surged 95% in the past six months, reflecting positive market sentiment towards the cryptocurrency.

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

Bitcoin’s resurgence in appeal is not limited to ETFs. Major banks and financial institutions are closely watching the market. Some advocate for regulatory adjustments to accommodate the growing demand for Bitcoin custodians. This reflects widespread recognition of Bitcoin’s potential to redefine investment portfolios and its role as a modern asset class.

Investors offload their gold ETF holdings.

Bitcoin’s rise is reflected in its performance compared to traditional safe havens such as gold. The digital currency’s 23% annual growth stands in stark contrast to gold’s modest decline. This therefore highlights the shift in investor preferences for digital assets.

This change is evidenced by significant outflows from gold ETFs, a trend that stands in stark contrast to previous year inflows.

“Right now things are looking very bad for the gold ETF sector. Certainly, I don’t think these are the people migrating to Bitcoin ETFs. Maybe it’s a very small thing, but given the new environmental data, it could reverse, but I think it’s just our stock FOMO,” Balchunas emphasized.

The variety of companies accumulating Bitcoin, including BlackRock, Fidelity, Ark/21 Shares, Bitwise and others, marks a pivotal moment in financial markets. With a total of 263,526.06 BTC, these companies are pioneers in the financial revolution.

As Bitcoin continues to challenge traditional investment paradigms, its acceptance among institutional investors has ushered in a new era of integrating digital assets into mainstream financial portfolios.