- U.S. Bitcoin spot ETF sees first positive fund flow in seven days, with $343M.
- Grayscale’s Bitcoin Trust records its first-ever inflow since inception, after draining over $12 billion.
- Institutional interest rekindles as Bitcoin reclaims the $63,500 threshold.
After seven consecutive days of negative flow, the U.S. Bitcoin spot ETF records a positive fund flow of $343M. Grayscale’s Bitcoin Trust also sees its first-ever inflow since inception. This comes as Bitcoin reclaims the $63,500 threshold, sparking renewed institutional interest.
U.S. Bitcoin Spot ETF Records Positive Fund Flow
The U.S. Bitcoin spot exchange-traded fund (ETF) has witnessed the first positive fund flow after seven consecutive days of trading with negative flow. According to public records, U.S. Bitcoin spot ETFs ended Friday trading with a net inflow of $343 million. This influx was influenced by Fidelity’s FBTC, which alone witnessed a positive flow of $102.6 million.
Grayscale’s Bitcoin Trust Sees First-Ever Inflow
More remarkable, Grayscale’s Bitcoin Trust (GBTC) recorded the first-ever inflow since its inception after draining over $12 billion. In particular, Grayscale ETF saw a positive flow of $63 million for the first time since the January approvals. Meanwhile, the firm recorded an outflow of over $12 billion since the approvals.
Other U.S. Issuers See Positive Flow
Other U.S. issuers that saw positive flow on Friday included BlackRock (IBIT), Bitwise (BITB), Ark Invest, Franklin (EZBC), and Invesco Galaxy (BTCO). On the other hand, the ETFs of Valkyrie (BRRR) and WisdomTree (BTCW) saw zero influx.
Bitcoin ETF Market Dried Up Amid Price Correction
Notably, before Friday, the U.S. Bitcoin ETF market last saw inflow on April 25. The flows dropped to negative as BlackRock’s ETF saw consecutive trading days with zero influx. Furthermore, the flow to the ETF market dried up amid Bitcoin’s price correction over the past few weeks. For instance, after Bitcoin crashed to $56,555 on May 1, these ETF issuers saw a staggering outflow of $564 million the following day. Essentially, institutional investors adopted a cautious approach in their investment towards Bitcoin products amid the market dips.
Conclusion
The recent positive fund flow in the U.S. Bitcoin spot ETF and Grayscale’s Bitcoin Trust signals a renewed institutional interest in Bitcoin. This comes as Bitcoin reclaims the $63,500 threshold. However, the market remains volatile, and institutional investors are advised to tread cautiously.
