Spot Bitcoin ETFs See Major Growth in June

Spot Bitcoin ETFs See Major Growth in June

etfBitcoin ETF

By Jakub Lazurek

11 Jun 2024 (about 1 month ago)

3 min read


Spot Bitcoin ETFs in the U.S. saw a significant surge in June, surpassing May's numbers with major acquisitions and growing institutional interest.

The United States spot Bitcoin Exchange Traded Funds (ETFs) saw a significant surge in June, marking a notable increase from the previous month. In the first week alone, these ETFs acquired Bitcoin (BTC), equivalent to two months' worth of mining supply.

Between June 3 and 7, the eleven spot Bitcoin ETFs approved by the US Securities and Exchange Commission (SEC) purchased 25,729 Bitcoin worth $1.83 billion. According to HODL15Capital, the Bitcoin mined during that period was about 3,150 units, making the ETFs' acquisition eight times higher. HODL15Capital's data shows that for the entire month of May, spot Bitcoin ETFs bought only 29,592 BTC. This highlights a tough month of May for these ETFs compared to the significant buying week in June.

The past week marked the largest buying spree since mid-March, when Bitcoin's price surged to a new all-time high (ATH) of around $73,000. Over the last five months, these Bitcoin ETFs have seen net inflows of $15.69 billion. Despite the $17.93 billion in net outflows from Grayscale’s GBTC, US spot Bitcoin ETFs now manage a total of $61 billion in Assets Under Management (AUM). This is impressive compared to traditional asset ETFs that have been around much longer.

Gold ETFs, which have existed for 20 years, now have 60% of the AUM of these five-month-old US spot Bitcoin ETFs. Nate Geraci, President of ETF Store, highlighted this growth in a post on X (formerly Twitter) on June 9. The surge in Bitcoin's price can be linked to the increased acquisition of the cryptocurrency by these ETFs.

Bitcoin's price has been volatile over the past week, with daily highs and lows. While Bitcoin reached a peak of $71,093 on Wednesday, it is currently trading at $69,407.61, showing a 0.05% increase in the last 24 hours. Despite dropping below $70,000, Bitcoin's rise on June 5 was the first time it crossed $71,000 since May 21. The digital asset is struggling to break through its current ATH.

Crypto market experts are optimistic that if Bitcoin surpasses its ATH, it could climb to $83,000 or even $100,000 before the year ends. Robert Kiyosaki, the author of “Rich Dad Poor Dad,” is particularly bullish, predicting that Bitcoin will reach $350,000 by August 25. Kiyosaki's confidence in Bitcoin stems from his skepticism about the current US leadership.

The rapid growth of spot Bitcoin ETFs in the US shows increasing acceptance and integration of Bitcoin into mainstream finance. SEC approval has enabled institutional investors to gain exposure to Bitcoin securely. This institutional interest drives significant capital inflows into Bitcoin, supporting its price.

Comparing with Gold ETFs underscores the rise of Bitcoin ETFs. While gold has been a traditional safe haven, Bitcoin is seen as a digital alternative. The swift capture of a substantial portion of AUM by Bitcoin ETFs indicates a shift among investors towards digital assets.

As Bitcoin gains traction, the role of ETFs in its ecosystem will likely expand. These instruments bridge traditional finance and cryptocurrencies, making it easier for investors to enter the Bitcoin market. The performance of Bitcoin ETFs in June sets a positive precedent for future growth and adoption.

In summary, the surge in Bitcoin ETF acquisitions in June could surpass May's numbers, highlighting growing institutional interest in Bitcoin. With predictions of Bitcoin reaching new highs, the development and acceptance of Bitcoin ETFs will be crucial in shaping the future of digital assets in finance.

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