Bitcoin Spot ETFs Maintain Strong Momentum with 13 Consecutive Days of Net Inflows

Bitcoin Spot ETFs Maintain Strong Momentum with 13 Consecutive Days of Net Inflows

Bitcoin spot exchange-traded funds (ETFs) continue to attract significant interest from investors, as they have recorded thirteen consecutive days of net inflows. On May 30, the total net inflow for Bitcoin spot ETFs reached $48.706 million, according to data from SoSo Value. Notably, Grayscale ETF GBTC experienced no outflows on that day, while Fidelity ETF FBTC witnessed an inflow of $119 million.

The historical net inflow for Bitcoin spot ETFs has now surpassed an impressive $13.809 billion, highlighting the sustained growth and popularity of these investment options in the cryptocurrency market.

BlackRock’s iShares Bitcoin Trust has emerged as the world’s largest fund for Bitcoin, accumulating nearly $20 billion in total assets since its listing earlier this year. On Tuesday, the exchange-traded 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. This coincided with Grayscale’s conversion into an ETF. 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.

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its launch, the iShares Bitcoin Trust has attracted the highest inflow, totaling $16.5 billion, while investors have withdrawn $17.7 billion from the Grayscale fund during the same period.

Bitcoin ETFs have proven to be one of the most successful categories of ETFs, accumulating a total of $58.5 billion in assets. This growth has been fueled by the quadrupling of Bitcoin’s value since the beginning of last year. However, critics raise concerns about the suitability of volatile digital assets for widespread adoption, even within the structure of ETFs.

Despite the success of Bitcoin ETFs, Vanguard Group, the world’s second-largest asset manager, has stated that it has no plans to offer any crypto-related products, emphasizing a cautious approach to digital asset market volatility.

The positive momentum for cryptocurrency ETFs extends beyond Bitcoin. Last week, the SEC signaled its willingness to allow ETFs for Ether, the second-largest cryptocurrency by market value. On May 23, the SEC officially approved 19b-4 applications from various companies for issuing spot Ether ETFs.

While Bitcoin ETFs continue to thrive, it is worth noting that Grayscale’s forthcoming spot Ethereum ETF may face significant outflows, potentially averaging around $110 million per day, according to analysis firm Kaiko.

Overall, the success of Bitcoin ETFs and the increasing acceptance of cryptocurrency ETFs signal a growing interest in digital assets among investors. However, regulatory challenges and concerns about volatility remain, prompting some institutions to approach the market with caution.