US Spot Bitcoin ETFs Attract Record $479M in Inflows, Hitting 2-Week High
U.S. spot bitcoin exchange-traded funds (ETFs) saw their largest daily inflows in two weeks on Monday. According to data from SoSoValue, the funds attracted $479.35 million in investment on the day, with BlackRock’s IBIT leading the charge. In quite the typical manner, BlackRock’s IBIT led the inflows after adding $315.19 million to extend its streak of consecutive positive flows to 11 days. Ark and 21Shares’ ARKB followed with $59.78 million in inflows, while Fidelity’s FBTC came third after seeing $44.12 million inflows on the day. $38.67 million and $21.59 million were also added to Bitwise’s BITB and Grayscale’s BTC, respectively, while the remaining seven spot Bitcoin ETFs experienced zero flows. Interestingly, none of the funds saw negative flows on the day, pointing to the fact that there is a strong sentiment around Bitcoin at the present moment. Also, the total daily trading volume for all 12 ETFs reached $3 billion on Monday, up from $2.9 billion on Friday. As of publication, Bitcoin was seen trading at $72,746 , up 4.13% over the past 24 hours. That is, according to data from CoinMarketCap. The gains within this short period have been enough to take the cryptocurrency to heights not seen since June. At that same time, Ether climbed 2.94% to change hands at $2,640. Contrasting Fortunes Between Bitcoin and Ether ETFs While spot Bitcoin ETFs in the U.S. saw cumulative positive daily flows on Monday, the story was a bit different with their Ethereum counterparts. Spot Ethereum ETFs in the U.S., for instance, saw a modest $1.14 million in net outflows on Monday. However, it might be something to cheer about as the latest outflow pales in comparison to the $19.16 million in net outflows recorded on Friday. Of all Ether ETFs, Grayscale’s ETHE was the only spot Ether ETF that had capital flow out of it. The fund saw $8.44 million exiting it. The likes of Fidelity’s FETH and BlackRock’s ETHA saw $5.02 million and $2.28 million in new investments, albeit respectively. All other six spot Ether ETFs recorded zero flows.
Grayscale’s GBTC Sees Surprising Decrease in Outflows
The spot Bitcoin exchange-traded funds (ETF) space has seen an unexpected twist after Grayscale Bitcoin Trust (GBTC) defied market expectations to record a significant decrease in its outflows. For the first time since the ETFs launched, GBTC posted only a measly $82 million outflow since March 12, indicating its growing resilience. For clarity, GBTC has a historical trend of consistently high outflows that has made it experience staggering net outflows of over $15 billion since its inception in January. The outflows have been so massive that GBTC is the only spot Bitcoin ETF with negative net flows. However, the recent development looks to suggest that market dynamics and investor sentiment are gradually changing. Interestingly, while GBTC is seeing reduced outflows, ARK 21Shares (ARKB) has contrasting fortunes. According to Coinglass data, ARKB faced substantial outflows totaling $87.5 million. GBTC, Others Flourish as Spot Bitcoin ETFs Gain Traction The emergence of spot Bitcoin ETFs has undoubtedly created new investment opportunities in the digital asset space. At least, the results thus far, show this to be true. The Newborn Nine have collectively attracted over $12 billion in net inflows since launch. As Bloomberg ETF analyst Eric Balchunas pointed out, there was a staggering $111 billion in trading volumes for spot Bitcoin ETFs in March alone. That is triple the levels recorded in the preceding months. In all of this, BlackRock and Fidelity’s Bitcoin ETFs, IBIT and FBTC, have caught more attention than most of their counterparts. This means that they saw a significantly higher investment within the first quarter of their launch. IBIT, in particular, has seen an unprecedented growth, accounting for over half of BlackRock’s yearly net inflows. FBTC, on the other hand, was responsible for 70% of Fidelity’s net inflows. Overall, it appears that investor confidence at this time is at levels never seen before. Despite market fluctuations, the sustained cash inflows into IBIT and FBTC for 52 consecutive days only signals sky-high confidence and an unusual patience among investors. More than the fact that there is an undeniable shift toward the digital asset space by traditional investors, evidence also suggests that ETF investors are gradually maturing to the point of navigating challenging market conditions.
