Bitcoin ETFs See $2.2 Billion Inflows in Two Days

US-based spot Bitcoin ETFs achieved a historic milestone by recording over $1 billion in inflows for two consecutive days. This unprecedented event occurred on Thursday and Friday, marking the first time since their launch in January 2024 that these investment vehicles have seen such significant back-to-back inflows. On Thursday, the 11 spot Bitcoin ETF products recorded total inflows of $1.17 billion, followed by $1.03 billion on Friday. This surge in capital inflows is indicative of the growing institutional interest and demand for Bitcoin as an investment asset.

The $1.17 billion inflow on Thursday was the second-largest daily inflow since the inception of these ETFs, surpassed only by the $1.37 billion recorded on November 7, 2024, following Donald Trump's victory in the US presidential election. This influx of capital was driven by voracious demand from equity market vehicles such as ETFs and digital-asset Treasuries, which have underpinned a continuous bid for Bitcoin. The rally in Bitcoin prices is part of a broader rally in risk assets, including technology stocks, which has been fueled by institutional demand and a favorable macro backdrop.

The surge in Bitcoin ETF inflows is a boon for a new generation of Wall Street deal makers and corporate executives, particularly those involved in crypto treasury companies. These entities are banking on Bitcoin's advance to unlock new rounds of financings. The breakout in Bitcoin prices, driven by institutional demand, is the latest validation for crypto bulls. This trend is expected to continue, with short-dated options signaling optimism. On crypto-exchange Deribit, the bullish contracts expiring in late July show elevated open interest at the $115,000 and $120,000 strike levels.

The inflows into Bitcoin ETFs are not isolated; they are part of a broader trend of institutional adoption of digital assets. On the same day, Ether ETFs recorded their second-biggest day of inflows ever at $383.1 million, with BlackRock's iShares Ethereum Trust seeing its largest daily inflow. This trend is expected to continue, with analysts predicting that the demand for Bitcoin and other digital assets will remain structural, regulated, and sticky.

The surge in Bitcoin ETF inflows is a testament to the growing acceptance of digital assets as a legitimate investment class. The trend is expected to continue, with analysts predicting that the demand for Bitcoin and other digital assets will remain strong. However, traders should stay vigilant for potential profit-taking or macroeconomic shifts that could spark corrections. The trend is firmly bullish for now, but the market remains at the mercy of febrile sentiment on Wall Street in a year of volatility.