Bitcoin ETFs See $300 Million Surge in Inflows as BTC Approaches $65K

Spot Bitcoin exchange-traded funds (ETFs) experienced a surge in inflows, totaling $301 million on Monday, as the price of Bitcoin approaches the $65,000 mark. According to SoSoValue data, BlackRock’s IBIT led the inflows with $117.25 million, closely followed by Ark Invest and 21Shares’ ARKB with $117.19 million. Fidelity’s FBTC saw $36.15 million in net inflows, while Bitwise’s BITB recorded $15.24 million. Other ETFs from VanEck, Invesco, Galaxy Digital, and Franklin Templeton also reported positive inflows. However, Grayscale’s GBTC, alongside ETFs from Valkyrie, WisdomTree, and Hashdex, recorded no net flows for the day.

Total Trading Volume

On Monday, the trading volume for U.S. spot Bitcoin funds reached $2.26 billion, although this is lower than the peak volumes seen in March, which often exceeded $8 billion per day. Since their launch in January, these ETFs have accumulated net inflows amounting to $16.11 billion, highlighting growing investor interest in Bitcoin amid its price recovery. Currently, Bitcoin is trading at $63,400, having surged above $64,000 earlier. Matteo Greco, Research Analyst at Fineqia International, noted a particularly bullish week for Bitcoin, ending around $60,800, marking an 8.8% increase from the previous week’s close. This rise was supported by consistent daily net inflows into BTC Spot ETFs, which exceeded $1 billion for the week, with Friday alone seeing a high of $310 million in inflows.

Asset Management Milestones

Greco highlighted that Fidelity’s FBTC has surpassed $10 billion in assets under management (AUM), joining BlackRock’s IBIT and Grayscale’s GBTC in this milestone. Collectively, BTC Spot ETFs now manage over $51.3 billion in assets, representing more than 4.5% of the total Bitcoin supply. Despite robust inflows, trading volumes, at $6.9 billion for the week, remained slightly below average since inception but showed an uptick compared to recent weeks.

Anticipation for Spot Ether ETFs

The market is also anticipating the imminent launch of Ethereum (ETH) Spot ETFs, with expectations for SEC approval possibly within July. Analysts foresee strong inflows into ETH Spot ETFs, mirroring the success of BTC Spot ETFs but adjusted for the differing market dynamics between Bitcoin and Ethereum. “Following the success of BTC Spot ETFs, strong inflows are expected for ETH Spot ETFs, adjusted for the market cap difference between BTC and ETH,” Greco wrote. He also noted that ETH Spot ETFs might see outflows from Grayscale Ethereum Trust, similar to what happened with GBTC, providing more reliable insights to analyze the impact of the ETH Spot ETFs launch.

Crypto Market Rally

As reported, digital asset investment products saw inflows totaling $1.44 billion last week, pushing year-to-date inflows to $17.8 billion, far exceeding the $10.6 billion recorded in all of 2021. The price of Bitcoin recovered above $62,000 over the weekend amid a broader crypto market rally, which began soon after the assassination attempt on former US President and current Republican presidential candidate Donald Trump.