Bitcoin ETFs See Unprecedented $886M Inflow as BTC Surges Past $70K

• On June 4, U.S. spot Bitcoin exchange-traded funds (ETFs) witnessed a significant net inflow, totaling $886.6 million.
• This surge marks the highest influx since March 12, when the ETFs recorded inflows of $1.04 billion. The following day, Bitcoin saw its peak value of $73,679.
• According to financial data, leading financial institutions were prominent contributors to these inflows.

Record-breaking inflows into U.S. spot Bitcoin ETFs highlight robust investor demand amid market fluctuations.

Fidelity Dominates with $378 Million in Inflows

Farside Investors’ data reveals that Fidelity’s FBTC ETF led the charge, attracting $378 million in inflows. BlackRock’s IBIT trailed closely with $274 million, while ARK 21Shares Bitcoin ETF (ARKB) secured the third spot with $138.7 million.

Grayscale’s GBTC, despite its history of significant outflows, recorded $28 million in inflows. This is noteworthy as it is one of the few instances of positive flows since its transition to a spot ETF in January.

Historically, GBTC has endured substantial net outflows, primarily due to its high management fees of 1.5% and a compressed discount. According to the Apollo Bitcoin Tracker, Grayscale’s holdings have notably decreased from 620,000 BTC at launch to 285,481 BTC, valued at $20.2 billion.

Other ETFs, including those from Invesco Galaxy, Franklin Templeton, WisdomTree, and Hashdex, did not experience any inflows on June 4.

Bitcoin Surges Past $70,000

The influx into U.S. spot Bitcoin ETFs coincided with Bitcoin climbing above the $70,000 threshold. CoinGecko data shows that Bitcoin is currently trading at just over $71,000, marking a 3.1% rise over the past 24 hours.

Eric Balchunas, Bloomberg’s ETF analyst, highlighted Fidelity’s substantial involvement. He noted that the cumulative inflow over the past four weeks amounted to $3.3 billion, with the year-to-date net reaching $15 billion. Balchunas described this rapid accumulation as a “tidal wave” of investor momentum.

Fidelity is making significant moves, with major inflows observed today for various funds. This marks the second-best day since mid-March, with a cumulative $3.3 billion over the past month and a net YTD of $15 billion. The ‘third wave’ is transitioning into a massive surge.

— Eric Balchunas (@EricBalchunas) June 5, 2024

Nate Geraci, President of the ETF Store, expressed his astonishment at the nearly $900 million inflows, commenting, “Five months post-launch. I was informed months ago that all potential retail investors had already entered the market. So, who are these new investors?”

Recently, on May 24, the spot Bitcoin ETF market collectively held over one million BTC, most of which are U.S.-based ETFs among the 32 available globally.

Conclusion

In summary, the recent substantial inflows into U.S. spot Bitcoin ETFs reflect a renewed investor interest, propelling Bitcoin’s price above the $70,000 mark. Institutions like Fidelity, BlackRock, and ARK are leading this surge, indicating robust market confidence. As the ETF landscape evolves, these trends suggest an optimistic outlook for Bitcoin and related investment products.