Some serious money is flowing into US spot Bitcoin exchange-traded funds (ETFs) at the moment, signalling a sort of renewed market optimism. This follows after the funds attracted more than $2 billion in investor capital over the past two weeks.
Bitcoin ETFs Record Massive Inflow
Confirming the renewed market optimism, the Crypto Fear and Greed Index has hit its highest level in over a month. Data from SoSoValue and Alternative.me show the index soaring by 14 points to hit 74 early on Saturday. This surge, which undoubtedly reflects growing investor confidence, also coincides with Bitcoin’s price peaking earlier at $66,800 on TradingView.
Last week, despite the gloomy nature of the market, US spot Bitcoin ETFs managed to draw in over $1 billion. The ETFs kept the pace and were able to bring up the momentum into the just-concluded week.
Recall that the week kicked off with a strong start as Monday alone saw $301 million flowing into the funds. By the end of the week, cumulative weekly inflows had surpassed $1 billion. While the total weekly inflow was already notable, even more surprising is the fact that the figure did not include ARKB’s Friday data update yet.
BlackRock’s IBIT came up as the weekly leader after racking up approximately $706 million in inflows this week alone. Per data from SoSoValue and Farside, IBIT alone has seen over $1.2 billion in the past two weeks. This means that the fund alone captured half of the total inflows across eleven spot funds. With nearly $22 billion in assets under management (AUM) as of July 19, IBIT’s place as the largest spot Bitcoin ETF goes without saying.
Fidelity’s FBTC also caught the eyes of investors, with inflows totalling around $244 million this week. Bitwise’s BITB, on the other hand, reported over $70 million in inflows, contributing to the overall surge in ETF investments.
For what it’s worth, though, not all ETFs saw gains. Grayscale’s GBTC, for instance, recorded an outflow of nearly $56 million. However, that was not enough to influence the net flow for the funds, which ended in over $20 million coming into the funds.
Signs That Investor Confidence Are Through The Roof
The sustained inflows into these Bitcoin ETFs show clearly that there is a growing confidence in digital assets among institutional and retail investors alike. That is especially true considering that there have been eleven consecutive days of positive inflows.
As Bitcoin continues to attract institutional interest, a key takeaway from the continued capital inflow into these ETFs is that a new era of crypto adoption within traditional investment frameworks might already be in play.
