Institutional investors are snapping up Bitcoin ETFs, driven by optimism around Bitcoin’s recent price milestones.
Bitcoin spot exchange-traded funds (ETFs) in the United States recorded nearly $600 million in daily inflows on December 12, marking the 11th consecutive day of inflows since the start of the month.
The inflows are buoyed by Bitcoin’s BTC $94 276 24h volatility: 0.6% Market cap: $1.87 T Vol. 24h: $30.34 B recent surge past the $100,000 psychological level, breaking a critical barrier for further potential gains. In response to the bullish market sentiment, institutional investors are steadily acquiring Bitcoin ETFs to position themselves for anticipated price increases.
Massive Inflows Signal Institutional Confidence
The $600 million recorded on Friday brought the funds’ cumulative total net inflows to $35.17 billion. As of now, the total Bitcoin (BTC) holdings by asset issuers are valued at $112.55 billion, marking a 5.68% growth over time.
Data from blockchain ETF tracker SoSoValue reveals that BlackRock’s iShares Bitcoin Trust (IBIT) led the charge, locking in approximately $432 million in inflows for the day. This marks a significant rebound from its performance on December 11, when the fund saw no investor activity.
The surge has pushed BlackRock’s total Bitcoin market share to 3%. While addressing the recent spike in Bitcoin activity, BlackRock noted that a Bitcoin allocation of up to 2% is a “reasonable range” for multi-asset portfolios.
The asset management giant, which oversees $11.5 trillion in assets under management (AUM), explained that a 1%-2% Bitcoin weighting offers a similar risk profile to holding the “Magnificent Seven” tech stocks.
These comments come amid a growing trend of corporate institutions adopting Bitcoin as a strategic reserve to hedge against market volatility and unforeseen challenges.
Earlier this week, Indian tech firm Jetking Infotrain became the first publicly traded company in India to adopt Bitcoin as a corporate reserve. The 77-year-old company acquired 12 BTC, valued at around $1.2 million on December 9, marking its entry into the crypto market.
Broader Market Participation
Meanwhile, BlackRock’s IBIT was not the only Bitcoin ETF to attract significant inflows on December 12. According to SoSoValue, institutional investors purchased $30.54 million worth of the Fidelity Wise Origin Bitcoin Fund (FBTC), bringing its cumulative net inflows to $12.25 billion.
Additionally, other Bitcoin ETFs such as ARK 21Shares Bitcoin ETF (ARKB), Bitwise Bitcoin ETF (BITB): $61.45 million inflows and WisdomTree Bitcoin Trust (BTCW) also saw notable activity. The funds registered $8.97 million, $61.45 million and $2.65 million in inflows, respectively.
However, not all funds benefited from the wave of enthusiasm. Grayscale’s Bitcoin Trust (GBTC) recorded nearly $48.40 million in outflows, diverging from the broader trend. Despite this, its Grayscale Bitcoin Mini Trust (BTC) attracted $110.76 million in inflows, reflecting mixed sentiment among institutional investors.
Other US-listed Bitcoin ETFs, including Invesco Galaxy Bitcoin ETF (BTCO), Franklin Templeton Digital Holdings Trust (EZBC), and Hashdex Bitcoin ETF (DEFI), recorded no investor activity on December 12.
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