Record Inflows: Spot Bitcoin ETFs See $295 Million Surge Signaling Institutional Buy-Up

• Spot Bitcoin ETFs in the US witnessed a significant inflow of $295 million, marking the highest inflow in the last 21 days, indicating substantial buying from institutional investors.
• BlackRock’s iShares Bitcoin ETF (IBIT) saw an impressive $187.2 million in inflow, the highest in the past few weeks.
• The price of Bitcoin surged over 3% as it approached the $60,000 mark.

Spot Bitcoin ETFs in the US attract $295 million in inflows, signaling strong institutional demand amid macroeconomic challenges.

Substantial Institutional Buying Drives Bitcoin ETF Inflows

This week saw an unprecedented inflow into spot Bitcoin ETFs in the US, with a total of $295 million recorded. This marks two consecutive days of significant buying activity, despite ongoing market uncertainties such as the German government’s Bitcoin selloff and key macroeconomic events.

BlackRock’s iShares Bitcoin ETF Leads the Charge

According to reports from Bloomberg and Farside Investors, BlackRock’s iShares Bitcoin ETF (IBIT) led the inflow surge with a remarkable $187.2 million. This recent inflow pushed BlackRock’s net ETF inflows to over $17.9 billion, with Bitcoin holdings now valued at nearly $18 billion.

Diverse ETF Inflows Highlight Broader Market Interest

Fidelity Bitcoin ETF (FBTC) recorded an inflow of $61.5 million on the same day, bringing its total inflows to $9.42 billion. Other notable ETFs, including Bitwise Bitcoin ETF (BITB), Ark 21Shares (ARKB) Bitcoin ETF, and VanEck Bitcoin ETF (HODL), saw inflows of $11 million, $8.4 million, and $1.6 million, respectively.

Grayscale Bitcoin Trust Shows Resilience

Notably, the Grayscale Bitcoin Trust (GBTC) managed to attract $25.1 million in inflows, reversing the trend of consecutive outflows in previous days. GBTC’s purchase of 450 BTC signifies continued robust demand from institutional investors.

Bitcoin Price Eyes $60,000 Amid Inflow Surge

This surge in institutional buying is generating optimism for a potential Bitcoin rally to above $60,000. Bitcoin’s price increased by over 3% in the last 24 hours, currently trading at around $57,603. The trading volume also soared by 36%, highlighting growing interest from traders.

Market Sentiment and Future Outlook

The derivatives market data show a significant rise in Bitcoin futures and options trading. Open interest in BTC futures across various exchanges saw a 2.60% increase, particularly on CME and Kraken, indicating a higher demand in the US. However, market participants should remain cautious with upcoming macroeconomic events including the Fed Chair Jerome Powell’s speech and the release of CPI and PPI inflation data.

Conclusion

In summary, the recent inflows into spot Bitcoin ETFs, spearheaded by BlackRock’s iShares Bitcoin ETF, illustrate strong institutional interest in Bitcoin. Despite market challenges, the continued robust buying activity suggests a positive outlook for Bitcoin’s price movement. Investors should stay informed about macroeconomic developments that may impact market dynamics in the near future.