Bitcoin Spot ETFs Continue to Attract Investors with $105M Inflows for 15 Consecutive Days
Bitcoin spot exchange-traded funds (ETFs) have seen a consistent influx of funds, with a net inflow of $105 million recorded on June 3. This marks the 15th consecutive day of positive inflows for these ETFs.
Among the Bitcoin spot ETFs, Fidelity ETF FBTC saw a significant inflow of $77.0482 million, while Bitwise ETF BITB attracted $14.3145 million in inflows. On the other hand, BlackRock’s iShares Bitcoin Trust reported no inflows or outflows during this period. Grayscale’s Bitcoin Trust ETF (GBTC) observed a daily net outflow of $0.00.
The sustained net inflows into Bitcoin spot ETFs are occurring as Bitcoin briefly surpassed the $70,000 mark on Monday, reaching its highest point in a week. However, the price retraced back to its usual trading range, continuing its sideways movement. Currently, Bitcoin is trading at around $69,000, reflecting a 2% increase over the past 24 hours. Ethereum’s ether (ETH) remains relatively stable, hovering just below $3,800.
Bitcoin and the wider cryptocurrency market have been in a consolidation phase for over two months since the leading cryptocurrency reached its all-time high above $73,000 in March. Analysts from Bitfinex suggest that this correction phase appears to be coming to an end. The correction from the all-time highs was largely influenced by long-term holders selling off their Bitcoin holdings. However, recent blockchain data indicates that these holders have started accumulating Bitcoin again for the first time since December 2023. Additionally, there has been an increase in the number of new accumulation addresses for both Bitcoin and Ethereum in the past month. This trend suggests a growing bullish sentiment among investors, despite the price stability observed in recent times. The analysis from Bitfinex refers to data from CryptoQuant to support these observations.
Digital asset investment products also saw positive investment trends, with $185 million in inflows last week. This marks the fourth consecutive week of positive inflows for these products. In May, these products attracted a total of $2 billion in inflows, surpassing the $15 billion mark for year-to-date inflows and reaching an all-time high.
Bitcoin ETFs have emerged as one of the most successful categories of ETFs, accumulating a total of $58.5 billion in assets. The growth of these funds has been fueled by the significant increase in 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. Some countries, such as Singapore and China, have implemented restrictions or bans on investor access to cryptocurrencies, highlighting the regulatory challenges faced by these investment vehicles.
The positive momentum for cryptocurrency ETFs extends beyond Bitcoin. Last week, the Securities and Exchange Commission (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 institutions for issuing spot Ether ETFs. Notably, some ETF issuers removed staking from their final amendments. It is worth noting that Grayscale’s forthcoming spot Ethereum ETF may potentially face significant outflows, averaging around $110 million per day, according to analysis firm Kaiko.
Overall, the growing interest in cryptocurrency ETFs and the increasing inflows highlight the continued growth and acceptance of digital assets in the investment landscape.