Bitcoin Spot ETFs Witness 13 Days of Consecutive Net Inflows, Sustaining Strong Investor Interest

Bitcoin spot exchange-traded funds (ETFs) are continuing to attract substantial investor interest, marking thirteen consecutive days of net inflows. On May 30, net inflows for Bitcoin spot ETFs reached $48.706 million, according to data from SoSo Value. Notably, Grayscale’s GBTC reported no outflows, while Fidelity’s FBTC saw an impressive inflow of $119 million.

The historical net inflow for Bitcoin spot ETFs has now surpassed $13.809 billion, highlighting the ongoing growth and popularity of these investment vehicles within the cryptocurrency market.

BlackRock’s ETF Overtakes GBTC

Earlier this week, BlackRock’s iShares Bitcoin Trust emerged as the world’s largest Bitcoin fund, amassing nearly $20 billion in total assets since its listing in the U.S. earlier this year. As of Tuesday, the fund held $19.68 billion worth of Bitcoin, slightly surpassing Grayscale Bitcoin Trust’s $19.65 billion. Fidelity Investments holds the third-largest spot with an $11.1 billion offering.

The launch of BlackRock’s Bitcoin ETF, along with Fidelity’s, was part of a cohort of nine funds that debuted on January 11, coinciding with Grayscale’s transition into an ETF. The approval of spot Bitcoin ETFs marked a pivotal milestone for the crypto industry, enhancing Bitcoin’s accessibility to investors and propelling the token to a record high of $73,798 by March.

Since its launch, the iShares Bitcoin Trust has attracted a total inflow of $16.5 billion, while Grayscale has seen withdrawals totaling $17.7 billion during the same period.

Bitcoin ETFs Among the Most Successful Investment Funds

Bitcoin ETFs have quickly become one of the most successful categories of ETFs, with total assets reaching $58.5 billion. These funds have seen remarkable growth, driven by Bitcoin’s value quadrupling since the start of last year. However, critics continue to question the suitability of such volatile digital assets for widespread adoption, even within the structured environment of ETFs.

Some countries, such as Singapore and China, have imposed restrictions or outright bans on investor access to cryptocurrencies, highlighting the regulatory challenges these investment products face. Despite their success, major financial institutions like Vanguard Group remain cautious, with Vanguard explicitly stating it has no plans to offer crypto-related products.

Expanding the Crypto ETF Landscape

The positive momentum for cryptocurrency ETFs is not limited to Bitcoin. Last week, the SEC signaled its openness to allowing ETFs for Ether, the second-largest cryptocurrency by market value. On May 23, the SEC approved 19b-4 applications from several prominent firms, including VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise, to issue spot Ether ETFs.

However, some ETF issuers have removed staking from their final amendments. Analysis firm Kaiko has reported that Grayscale’s forthcoming spot Ethereum ETF could face significant outflows, potentially averaging around $110 million per day.