February 2024 L1 Landscape Recap

Optimism within the crypto industry early in 2024 continued to rise in February, one month after the approval of several Bitcoin ETFs introduced a new source for capital inflows from both retail and institutional investors. Thus far, demand for the ETFs has remained strong, with heavy initial outflows from GBTC in early January eventually subsiding later in the month and surpassed by positive inflows through other ETF providers. Bitcoin ETF inflows remained staunchly positive in February, with only a single day of net negative outflows for the entire month. 

Net spot Bitcoin ETF flows totaled ~$3.45 billion over the course of February, representing new crypto investments in addition to those on existing venues, both on and off chain. In this report, we will take a closer look at key trends in the Layer 1 (L1) landscape against the backdrop of this rapidly rising investor enthusiasm in February.