Bitcoin Spot ETFs Continue to Attract Investors with $105M Inflows for 15 Consecutive Days
Ruholamin Haqshanas
June 4, 2024 03:14 EDT
Bitcoin spot exchange-traded funds (ETFs) maintained their popularity as they recorded a net inflow of $105 million on June 3, marking 15 consecutive days of positive investment 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.
In contrast, BlackRock’s iShares Bitcoin Trust reported no inflows or outflows during this period.
Similarly, Grayscale’s Bitcoin Trust ETF (GBTC) observed a daily net outflow of $0.00.
Bitcoin Surpasses $70,000
The sustained inflows into Bitcoin spot ETFs coincided with Bitcoin briefly surpassing the $70,000 mark on Monday, marking the first time in a week that it reached such heights.
However, the price retraced to its familiar trading range, continuing its sideways movement.
At the time of writing, Bitcoin was trading at around $69,000, reflecting a 2% increase over the past 24 hours.
Ethereum’s ether (ETH) remained 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 seems to be coming to an end.
Long-term holders selling off their Bitcoin holdings played a significant role in the correction from the all-time highs.
However, blockchain data indicates that these holders have started accumulating Bitcoin again for the first time since December 2023.
Furthermore, there has been a growing number of new accumulation addresses for both Bitcoin and Ethereum over the past month.
This trend indicates increasing 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 Products See Inflows
Digital asset investment products saw $185 million in inflows last week, marking the fourth consecutive week of positive investment trends.
In total, these products attracted $2 billion in inflows in May, pushing year-to-date inflows past the $15 billion mark, reaching an all-time high.
Bitcoin ETFs have emerged as one of the most successful categories of ETFs, amassing a total of $58.5 billion in assets.
These funds have experienced remarkable growth, fueled by the quadrupling of Bitcoin’s value since the beginning of last year.
While Bitcoin ETFs have proven to be profitable investments, critics raise concerns about the suitability of volatile digital assets for widespread adoption, even within the structure of ETFs.
Some countries, including Singapore and China, have implemented restrictions or outright 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 SEC also showed 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 VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise for issuing spot Ether ETFs.
Notably, several ETF issuers removed staking from their final amendments.
As reported, analysis firm Kaiko has stated that Grayscale’s upcoming spot Ethereum ETF may experience significant outflows, potentially averaging around $110 million per day.
Follow Us on Google News
