Bitcoin ETFs See $1 Billion Inflows as Price Surges 3.5%

Capital inflows into US-listed Bitcoin exchange-traded funds (ETFs) surged this week, with Tuesday alone witnessing nearly $1 billion in fresh investments. This influx propelled weekly inflows to $1.2 billion, pushing total assets under management (AUM) to $103 billion. This investment surge coincided with Bitcoin’s price rising above $93,000, reaching $93,700 – its highest level since early March.

BlackRock’s iShares Bitcoin Trust (IBIT) continues to lead the pack with year-to-date inflows of $2.7 billion. The fund attracted an additional $346 million last week. In contrast, Ark Invest’s ARKB and Grayscale’s Bitcoin funds have seen significantly smaller year-to-date inflows of $410.41 million and $385.31 million, respectively. Notably, Grayscale’s GBTC has experienced $1.18 billion in outflows since January, bucking the overall positive trend.

The broad participation in spot Bitcoin ETFs indicates growing institutional confidence. Ten of the 11 spot Bitcoin ETFs saw inflows of fresh funds this week, suggesting that institutional players are diversifying their bets across multiple funds rather than concentrating on one or two. This broad-based involvement is a positive sign for the market, as it shows depth in flow distribution rather than reliance on a single dominant fund.

While Bitcoin-linked investments are thriving, Ethereum products continue to face challenges. Investment products centered around Ethereum lost $26.7 million last week, bringing the eight-week outflow amount to $772 million. Despite this continued outflow, Ethereum remains in second place for year-to-date inflows at $215 million. Short Bitcoin products are also under pressure, with $1.2 million exiting these funds last week. This marks the seventh consecutive week of outflows, totaling $36 million over seven weeks – 40% of their assets under management. The ongoing outflows from short positions are consistent with Bitcoin’s recent price strength.

XRP is the only exception among alternative coins, with its investment products attracting over $37 million last week, the third highest for year-to-date inflows at $214 million. This defies the trend observed in most other altcoins, which still face selling pressure. The significant influx of capital into Bitcoin ETFs is a clear indication that traditional financial institutions are increasingly accepting cryptocurrency as a legitimate asset class. With nearly $1 billion entering the market in just one day, this marks a potential turning point in the mainstream acceptance of cryptocurrencies.