Bitcoin ETFs See $1 Billion Inflows for Two Consecutive Days

U.S. Bitcoin ETFs have witnessed an extraordinary surge in investor interest, with net inflows surpassing $1 billion for two consecutive days. This unprecedented event signifies a pivotal moment in the cryptocurrency market, highlighting the increasing institutional confidence and participation.

The surge in inflows is particularly striking given the broader market rally, which saw Bitcoin's price reach a new all-time high of over $118,000. The cumulative inflows for the 12 Bitcoin ETFs amounted to $1.2 billion, marking the second strongest daily performance since their launch in 2024 and the best this year. Since mid-April, these funds have attracted more than $15 billion in fresh capital, underscoring the robust interest from investors.

Ask Aime: Why didn't U.S. Bitcoin ETFs see sustained inflows after the surge?

BlackRock’s IBIT led the charge with $448.5 million in inflows, pushing its assets under management to just shy of $80 billion and holding over 700,000 Bitcoin. This rapid growth is particularly impressive when compared to the SPDR Gold Shares, the largest gold ETF, which took over 15 years to reach a similar level of assets under management. Other major issuers, such as Fidelity’s FBTC and Ark 21Shares’ ARKB, also recorded strong performances with inflows of $324.34 million and $268.7 million, respectively.

The influx of new funds into these ETFs is a testament to the growing institutional interest in Bitcoin. According to an analyst, the ability to attract new investors is a significant accomplishment, as it requires convincing them to buy into the ETFs. The analyst emphasized that while market appreciation can boost assets, net flows represent actual sales and indicate strong investor confidence. With assets now around $120 billion, the Bitcoin ETFs have surpassed gold funds in a remarkably short period, a feat that took gold over a decade to achieve.

Ethereum ETFs also saw strong performance, with the nine U.S. spot Ethereum funds collectively attracting over $383 million in inflows. BlackRock’s iShares Ethereum Trust was a standout performer, bringing in more than $300 million of the total inflows and seeing its volume climb to over $800 million for two consecutive days. Other issuers, including Grayscale, Fidelity, Bitwise, and VanEck, also saw notable inflows, further highlighting the broad-based interest in cryptocurrency ETFs.

The surge in inflows into Bitcoin and Ethereum ETFs is a clear indication of the growing institutional interest in cryptocurrencies. Financial advisors, who control enormous amounts of capital, have barely begun allocating to these ETFs, suggesting that there is still significant potential for further growth. Major platforms are still gatekeeping these ETFs, which could limit their accessibility but also create opportunities for those who can gain early entry.

The historic inflows into U.S. Bitcoin ETFs reflect a broader trend of institutional adoption and growing confidence in cryptocurrencies as a viable asset class. As more investors recognize the potential of Bitcoin and Ethereum, the demand for these ETFs is likely to continue to rise, driving further growth in the market. The rapid ascent of Bitcoin ETFs to surpass gold funds in assets under management is a remarkable achievement and underscores the transformative power of decentralized technology.