By
Chimamanda U. Martha
June 28th, 2024
The ongoing inflows into Bitcoin ETFs highlight the growing investor interest in digital assets.
The United States spot Bitcoin exchange-traded funds (ETFs) have attracted net inflows for 18 consecutive days. This surge in demand aligns with the recent performance of the cryptocurrency, sending it closer to its all-time high.
Since their launch on January 11, the net inflow for all the ETFs combined has reached $15.56 billion, bringing total assets under management (AUM) to $62.34 billion. These funds, managed by financial giants such as BlackRock Inc. and Fidelity Investments, have become some of the most successful ETF debuts in history.
According to data from SoSoValue, BlackRock’s $21.4 billion iShares Bitcoin Trust (IBIT) fund saw an inflow of $350 million on June 6, whereas Grayscale Investments LLC’s $20.1 billion Bitcoin Trust (GBTC) experienced an outflow of $38 million. This brings IBIT’s total net inflow to $17 billion, while Fidelity Wise Origin Bitcoin Fund (FBTC) has accumulated around $10 million.
The ongoing inflows into Bitcoin ETFs highlight the growing investor interest in digital assets. Ophelia Snyder, president of crypto ETF provider 21 Shares AG, emphasized that the adoption of these funds by institutions and intermediaries is still in its early stages.
“The market has quite a way to run and we’re still in quite early innings,” Snyder stated during the Bloomberg’s Tiger Money podcast.
Moreover, options traders are speculating that Bitcoin will surpass its previous peak of $73,798, set in March due to the sustained ETF inflows and expectations of future Federal Reserve interest-rate cuts. Sean Farrell, head of digital-asset strategy at Fundstrat Global Advisors LLC told Bloomberg:
“There have been massive inflows into spot-Bitcoin ETFs. Macro continues to trend in crypto’s favor, with economic growth slower at a non-recessionary pace and signs of disinflation continuing.”
Ethereum ETFs Launch Date Depends on Issuers: Gensler
The US Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs in January, following a court reversal in 2023. This decision marked a significant shift, as the SEC had been reluctant to endorse such products.
In May, the agency also approved 19b-4 filings for Ethereum-linked spot ETFs. However, the applicants cannot launch the products until the agency approves their S-1 registration. SEC Chair Gary Gensler recently told Reuters that the launch date for Ethereum ETFs depends on how diligent issuers are. He states:
“These registrants are self-motivated to be responsive to the comments they get, but it’s really up to them how responsive they are.”
Meanwhile, BTC has more than quadrupled in value since the start of last year, erasing the painful memories of the 2022 bear market. The cryptocurrency is currently trading at around $71,200, up by more than 4% in the last seven days. On the other hand, Ether still shows signs of consolidation, with a relatively unchanged value around $3,800.