Bitcoin ETFs See $2.72 Billion Inflows Amid Price Surge

Spot Bitcoin ETFs in the U.S. achieved a significant milestone last week, with two consecutive trading days each surpassing $1 billion in inflows. This marked the first time such high inflows were recorded since these investment products were launched in January 2024.

The 11 spot Bitcoin ETF offerings drew $1.03 billion in inflows on Friday, following an even higher $1.17 billion on Thursday. These substantial inflows occurred during a week when Bitcoin’s price climbed sharply, peaking at $118,780 on Friday, indicating a strong period for the digital asset.

Since their launch, billion-dollar inflow days for Bitcoin ETFs have been relatively rare. Out of all trading days since January 2024, only seven have recorded inflows exceeding $1 billion. Notably, two of those occurred last week alone. Prior to that, the last such day was on January 17, when $1.07 billion flowed into spot Bitcoin ETFs. Thursday’s $1.17 billion inflow was the second-highest daily figure to date, trailing only the $1.37 billion recorded on November 7, 2024.

The massive demand for Bitcoin ETFs was underscored by the fact that while Bitcoin’s network minted roughly 450 new Bitcoins on Thursday, ETFs scooped up around 10,000 units. Similarly, digital asset firm Jan3 reported that Bitcoin ETF demand on Wednesday was “22 times greater” than the mined supply. Despite warnings that this demand is not sustainable at current price levels, investor appetite continued to grow throughout the week.

By the end of the week, total inflows into spot Bitcoin ETFs stood at $2.72 billion, reflecting intense buying activity and institutional interest amid Bitcoin’s price reaching fresh all-time highs. The surge coincided with BlackRock’s iShares Bitcoin Trust (IBIT) crossing a key milestone, reaching $80 billion in assets under management (AUM) by Thursday. It was noted that it was the fastest any ETF had ever achieved that level, doing so in just 374 days.

The success of BlackRock’s IBIT has even led to it overtaking the firm’s long-standing S&P 500 ETF in terms of revenue generation. Total assets for all the spot Bitcoin ETFs crossed $140 billion for the first time as well. However, much of the growth in AUM was driven by Bitcoin’s soaring price, which has climbed over 8.8% in the past week.

The momentum behind spot Bitcoin ETFs appears to be gathering steam, powered largely by institutional demand rather than retail activity. With Bitcoin’s price continuing to chart new territory and inflows remaining robust, the coming weeks may reveal whether this surge can sustain itself or whether market corrections will test investor resolve.