On 3 June, Bitcoin spot exchange-traded funds (ETFs) experienced a significant boost with $105 million in net inflows. This marked the 15th consecutive day of net inflows for these ETFs.
Fidelity‘s ETF, Fidelity’s Wise Origin Bitcoin Fund (FBTC), led the charge with $77.0482 million, while Bitwise ETF BITB attracted $14.3145 million. Meanwhile, BlackRock’s iShares Bitcoin Trust and Grayscale’s Bitcoin Trust ETF (GBTC) reported no inflows or outflows during this period.
According to Bloomberg analyst Eric Balchunas, the inflows have been substantial for BlackRock and Fidelity, with their Bitcoin ETFs accounting for 26% and 56% of their total year-to-date ETF inflows, respectively.
IBIT and FBTC have seen $16.6 billion and $8.9 billion in inflows since their launch five months ago, per Farside Investor data. However, Vanguard remains ahead with $102.8 billion in total ETF inflows for 2024, surpassing BlackRock’s $65.1 billion.
ETF market dynamics
BlackRock currently manages 429 ETFs with $2.8 trillion in assets, while Fidelity offers 70 ETFs totaling $74 billion in assets under management. Invesco, with $34.7 billion in ETF flows this year, saw only 0.9% from its Bitcoin ETF, which accumulated $317.3 million in inflows in the first five months of the year.
Notably, BlackRock’s IBIT recently overtook Grayscale’s GBTC as the largest spot Bitcoin ETF, holding 291,567 BTC worth over $20 billion. Grayscale, which initially held 620,000 $BTC, now holds 285,139 $BTC valued at around $19.6 billion.
Bitcoin ETF flows have stabilised recently, with several issuers reporting zero inflows and outflows. For instance, Franklin’s Bitcoin ETF (EZBC) hasn’t seen any activity since 16 May.
However, non-Grayscale Bitcoin investment products are averaging $141.7 million in daily inflows, primarily from IBIT, FBTC, and the ARK 21Shares Bitcoin ETF (ARKB).
A rise for Bitcoin
These sustained inflows coincided with Bitcoin ($BTC) briefly surpassing $70,000 on Monday, although it soon retraced to around $69,000, marking a 2% increase in 24 hours. Ethereum ($ETH) stayed relatively stable at just below $3,800.
The broader cryptocurrency market has been consolidating for over two months since Bitcoin’s all-time high above $73,000 in March. Analysts from Bitfinex suggested that the correction phase is nearing its end as long-term holders begin accumulating Bitcoin again for the first time since December 2023.
Blockchain data has also indicated a rise in new accumulation addresses for Bitcoin and Ethereum, reflecting a growing bullish sentiment among investors despite recent price stability.
While digital asset investment products marked the fourth consecutive week of positive trends, some countries, including Singapore and China, have imposed restrictions or outright bans on cryptocurrency investments.
However, the US Securities and Exchange Commission (SEC) recently approved 19b-4 filings from major institutions like VanEck, BlackRock, and Fidelity for spot Ethereum ETFs. This move, announced on 23 May, was unexpected given the SEC’s cautious stance towards the crypto industry. It allows traditional financial institutions and investors to access Ethereum without directly holding the cryptocurrency.
The approval of Ethereum ETFs marked a significant development for the second-largest cryptocurrency by market value. Analysis firm Kaiko has predicted that Grayscale’s forthcoming spot Ethereum ETF might see substantial outflows, potentially averaging $110 million per day.
