Bitcoin ETFs See Record Inflows as BTC Price Surges
US spot Bitcoin ETFs hit second-highest inflows at $886M as BTC price surges past $71,000, showing strong institutional demand for crypto investments.
On June 4, U.S. spot Bitcoin exchange-traded funds (ETFs) saw a significant inflow of $886.6 million, marking their second-best day ever. The highest inflow was on March 12, with $1.04 billion. Bitcoin prices surged past $71,000, showing a growing interest in crypto investments among institutional investors.
Fidelity’s FBTC ETF led the way with $378 million in inflows, based on data from Farside Investors. BlackRock’s IBIT followed with $274 million, and the ARK 21Shares Bitcoin ETF (ARKB) attracted $138.7 million. These large inflows demonstrate a strong demand for Bitcoin ETFs from major financial firms.
Grayscale’s GBTC, which typically sees significant outflows, recorded $28 million in inflows, a rare positive shift since its conversion to a spot ETF in January. Despite this, GBTC has faced $17.8 billion in net outflows, mainly due to its high management fees and reduced discounts. Initially holding 620,000 BTC, Grayscale’s fund now holds 285,481 BTC, valued at $20.2 billion.
Not all spot Bitcoin ETFs experienced demand. ETFs from Invesco Galaxy, Franklin Templeton, WisdomTree, and Hashdex reported no inflows on June 4, indicating a competitive market and a preference for certain ETFs.
As demand for U.S. spot Bitcoin ETFs grew, Bitcoin’s price surged past $70,000, trading at over $71,000 according to CoinGecko, reflecting a 3.1% increase in 24 hours. This price rise shows renewed investor confidence in the cryptocurrency market.
Eric Balchunas, a Bloomberg ETF analyst, noted Fidelity’s proactive stance, highlighting $3.3 billion inflows over four weeks and a year-to-date net of $15 billion. Balchunas remarked that the 'third wave' of Bitcoin ETF investments is becoming a powerful momentum.
Fidelity not messing around, big-time flows all around today for The Ten, nearly $1b in total. Second best day ever, since Mid-March. $3.3b in past 4wks, net YTD at $15b (which was top end of our 12mo est). The 'third wave' is turning into tidal wave. https://t.co/S9yeSHaNbV — Eric Balchunas (@EricBalchunas) June 5, 2024
Nate Geraci, President of the ETF Store, was surprised by the nearly $900 million inflows, noting, "I was told that most ‘degen retail’ investors had already bought in. How can this be?”
On May 24, the overall market for spot Bitcoin ETFs reached a milestone with over one million BTC held collectively, mostly in U.S. products among 32 global ETFs. This milestone indicates the growing integration of Bitcoin into mainstream financial products and increasing confidence in its value.
The recent increase in Bitcoin prices and the significant inflows into U.S. spot Bitcoin ETFs highlight the growing demand and acceptance of cryptocurrency investments. Leading inflows from Fidelity and other major ETFs show strong interest from institutional investors. Despite challenges, the market for Bitcoin ETFs remains strong, with institutional participation crucial to its growth. As Bitcoin reclaims its $70,000 mark, the future of crypto investments looks promising.
