Bitcoin Spot ETFs Witness 13 Straight Days of Net Inflows
Bitcoin spot exchange-traded funds (ETFs) continue to attract significant investor interest, recording net inflows for thirteen consecutive days. This sustained momentum reflects growing confidence in Bitcoin as a digital asset, particularly through ETF vehicles that provide an accessible entry point for both retail and institutional investors
Strong Capital Inflows into Bitcoin Spot ETFs Highlight Increasing Investor Demand
As of May 30, 2024, Bitcoin spot ETFs saw a total net inflow of $48.706 million, according to SoSo Value data. This trend underscores the sustained interest in Bitcoin ETFs. On that particular day, Grayscale’s GBTC ETF reported no outflows, whereas Fidelity’s FBTC ETF experienced a significant inflow of $119 million.
Since mid-May 2024, Bitcoin spot ETFs have been consistently attracting considerable investment. Farside Investors reported that these funds accumulated inflows exceeding $1.75 billion over nine consecutive days, with notable peaks of $303 million and $305.7 million on May 15 and May 21, respectively. The iShares Bitcoin Trust (IBIT) saw the highest single-day inflow of $290 million on May 21.
BlackRock’s Dominance in the Market and Historical Inflows
The historical net inflow for Bitcoin spot ETFs has now surpassed an impressive $13.809 billion, underscoring the sustained growth and popularity of these investment options in the cryptocurrency market. Earlier this week, BlackRock’s iShares Bitcoin Trust took the lead as the world’s largest fund for Bitcoin, accumulating nearly $20 billion in total assets since its listing in the United States earlier this year. On Tuesday, the fund held $19.68 billion worth of Bitcoin, surpassing Grayscale Bitcoin Trust’s $19.65 billion. Fidelity Investments holds the third-largest spot with an $11.1 billion offering.
The launch of BlackRock’s Bitcoin ETF, along with Fidelity’s, was part of a group of nine funds that debuted on January 11, coinciding with Grayscale’s conversion into an ETF. Since its launch, the iShares Bitcoin Trust has attracted the highest inflow, totaling $16.5 billion, while investors have withdrawn $17.7 billion from the Grayscale fund during the same period.
The inflows into Bitcoin spot ETFs have had a noticeable impact on Bitcoin’s market performance. Over the past two weeks, Bitcoin’s price has surged, reaching around $69,100, which is just 6% shy of its all-time high of $73,700. This price movement aligns with the strong ETF inflows, suggesting that the capital entering these funds is contributing to the upward price pressure on Bitcoin.
The approval of spot Bitcoin ETFs marked a significant milestone for the crypto industry, making Bitcoin more accessible to investors and sparking a rally that saw the token reach a record high of $73,798 by March. Moreover, the success of Bitcoin spot ETFs is likely to influence the broader cryptocurrency market, setting a positive precedent for other cryptocurrency-based financial products.
Sustained Inflows Highlight Bright Future for Bitcoin Spot ETFs
Bitcoin spot ETFs have recorded 13 consecutive days of net inflows, reflecting growing investor confidence and institutional interest in Bitcoin. With a total net inflow of $48.706 million on May 30 and historical inflows surpassing $13.809 billion, these ETFs underscore the sustained growth in the cryptocurrency market.
BlackRock’s iShares Bitcoin Trust has emerged as the largest Bitcoin fund, holding $19.68 billion in assets, surpassing Grayscale Bitcoin Trust. The approval of spot Bitcoin ETFs has marked a significant milestone, making Bitcoin more accessible and driving its price near all-time highs.
Despite regulatory challenges and the cautious stance of some asset managers, the positive momentum is not limited to Bitcoin. The SEC’s recent approval of applications for Ether ETFs indicates expanding opportunities for cryptocurrency investments. This trend suggests a robust future for digital assets in mainstream finance, with Bitcoin spot ETFs playing a crucial role in this evolving landscape.
