Bitcoin Spot ETF Surges: Record Inflows $726 Million Mark, Driving Market Momentum and Investor Fervor

  • Record Inflows: Bitcoin ETFs witness a surge with $726 million inflows in the US market.
  • Market Revitalization: Significant cash flow renews market optimism after sluggish May conditions.
  • Institutional Interest: Increased institutional participation boosts Bitcoin ETF volumes and investments.

Bitcoin ETFs have seen significant cash flow recently, especially after sluggish conditions in early May. According to data from Farside, spot Bitcoin ETFs in the US recorded $726 million in cash flows over four days (May 13-May 16, 2024).

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These fund flows occurred evenly, with 8 of 11 US ETFs reporting positive fund flows. BlackRock’s IBIT ETF recorded the largest daily fund flow of $93.7 million, the highest since April 12, which brought IBIT’s total fund flow to US$15.6 billion. 

Additionally, Fidelity’s FBTC ETF also continued its strong performance, adding $67.1 million, bringing its total net fund flows to $8.4 billion. Grayscale Bitcoin Trust (GBTC), which previously experienced outflows, is now witnessing renewed interest by attracting investments totaling $27 million and $4.6 million on May 16 and 17.

Interestingly, looking at data since March 24, seven of the largest spot ETFs in the US managed $5.65 billion in volume collectively, according to data from research firm Santiment posted to X on May 16. 

One prominent aspect of this increase is increased institutional participation. Based on Form 13F filings, during the first quarter, 937 US companies had exposure to Bitcoin ETFs. This far exceeds the number of companies investing in gold ETFs, which amounted to 95 companies in the same period after its launch.

Seeing the number of companies investing into spot Bitcoin ETFs, Matt Hougan, chief investment officer at Bitwise, feels very optimistic. He argued that although filings show that professional investors own between 7% and 10% of Bitcoin ETF AUM, initial 13F filings may simply reflect a “down payment” before serious institutional allocation into the new asset class.

Hougan also noted that many disclosed allocations cover only a small percentage of institutions’ AUM, suggesting that many companies will likely increase their mobilization of 1% of their assets over time. The adoption of Bitcoin as a legitimate investment asset among institutions is increasing. This surge also influenced Bitcoin’s pricing, with a five percent rise over the past week, reaching a trading value of $66,300.

As of the moment of composing, the net asset value of Bitcoin spot ETFs is recorded at $54.628 billion. The ETF’s net asset ratio, which is the market value compared to the total market value of Bitcoin, stands at 4.25%. Historical cumulative net inflows have reached $12.404 billion.

Bitcoin Spot ETFs show up to have a shining future within the cryptocurrency. With inflows surpassing $726 million, there’s a developing investor certainty in Bitcoin’s potential as an important investment. 

This surge in capital signals increasing acceptance among institutional investors, revitalizing the market. As more companies invest in Bitcoin ETFs, the market is set for further expansion. This trend is positive for Bitcoin Spot ETFs, solidifying their role in digital asset investment.

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