Significant Inflows Mark Second-Best Day for Bitcoin ETFs

• Bitcoin ETFs see $886.6M inflows, second-highest day, with Fidelity’s fund leading at $378.7M, boosting market confidence.
• Bitcoin price surges to $71K amid strong ETF inflows, reflecting bullish sentiment and increased investor demand.
• Grayscale Bitcoin Trust, now a spot ETF, saw a rare $28.2M inflow despite high fees and net outflows since January.

U.S.-based spot Bitcoin exchange-traded funds (ETFs) experienced a notable surge in net inflows, marking their second-highest day ever with nearly $1 billion. According to preliminary data, the influx reached $886.6 million, underscoring growing investor interest and confidence in Bitcoin ETFs.The Fidelity Wise Origin Bitcoin Fund (FBTC) emerged as the leader with an impressive $378.7 million in net inflows. This substantial investment reflects Fidelity’s high position in the market and investors’ trust in their Bitcoin fund. BlackRock’s iShares Bitcoin Trust (IBIT) followed closely with $274.4 million, while the ARK 21Shares Bitcoin ETF (ARKB) secured the third position with $138.7 million in net inflows.

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Record Inflows Since March

This surge in inflows is the highest since March 12, when Bitcoin ETFs recorded an all time high of $1.04 billion in a single day. The recent inflows highlight a renewed interest and growing demand for Bitcoin ETFs, suggesting a bullish sentiment among investors. Bitcoin’s price also reflected this optimism, climbing to $71,000, a 2.9% increase over the last 24 hours.

Grayscale Bitcoin Trust’s Performance

The Grayscale Bitcoin Trust (GBTC) saw a rare inflow day of $28.2 million, notable for its performance since converting from a closed-end fund to a spot ETF in January. Despite this positive day, GBTC has experienced significant net outflows of over $17.8 billion, attributed to its high management fee and narrowed discount. Initially holding 620,000 BTC, the fund now holds 285,481 BTC, valued at $20.2 billion.

Industry Insights and Analyst Commentary

ETF Store president Nate Geraci addressed Bitcoin critics, highlighting the unexpected demand for Bitcoin ETFs. Geraci disapproved claims that the market for Bitcoin ETFs had saturated, emphasizing the significant inflows as evidence of continued interest. Bloomberg ETF analyst Eric Balchunas echoed this sentiment, noting the extensive flows into the Bitcoin ETFs, except for Hashdex’s fund, which struggled to attract investors.

Market Dynamics and Future Outlook

The high inflows into Bitcoin ETFs indicate a positive market sentiment and potential for future growth. The data from Farside Investors reflects a strong appetite for Bitcoin investment products, with the recent performance underscoring the confidence among institutional and retail investors alike. As Bitcoin continues to become popular, the ETF market is expected to see further developments and increased participation, shaping the future of cryptocurrency investments.

Read also

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