Bitcoin ETFs See $381.3M Inflow, Highest Since January

US-based Bitcoin exchange-traded funds (ETFs) experienced a significant surge in net inflows on April 21, marking the largest single-day inflow since late January. The 11 Bitcoin-tracking funds collectively saw a net inflow of $381.3 million, with the ARK 21Shares Bitcoin ETF (ARKB) leading the way with an inflow of $116.1 million. This influx of capital into Bitcoin ETFs is a clear indication of renewed institutional interest in the cryptocurrency market.

The last time the ETFs saw such a substantial inflow was on January 30, when they had a joint net inflow of $588.1 million. This previous surge came shortly after Bitcoin hit a peak and was trading with a six-figure price tag. The recent inflow on April 21 suggests that investors are becoming more confident in the long-term prospects of Bitcoin, despite the challenges faced by the ETFs over the past few weeks.

The Fidelity Wise Origin Bitcoin Fund (FBTC) saw the second-largest inflow for April 21, with $87.6 million, while the Grayscale Bitcoin Trust (GBTC) and the company’s Bitcoin Mini Trust ETF (BTC) saw joint net inflows of $69.1 million. BlackRock’s iShares Bitcoin Trust ETF (IBIT), the largest of the group by assets under management, saw net inflows reach $41.6 million, about half of the inflows it saw before the weekend trading break on April 17.

The Invesco Galaxy Bitcoin ETF (BTCO) and the WisdomTree Bitcoin Fund (BTCW) saw no inflows or outflows on April 21. This lack of movement in these funds suggests that while there is significant interest in Bitcoin ETFs, not all funds are experiencing the same level of investor enthusiasm.

The crypto markets remained buoyant over the Easter weekend, with the total crypto market capitalization climbing by $800 billion over the three-day break to hold at $2.84 trillion. Bitcoin has boosted that total, having climbed above a market value of $1.75 trillion for the first time since March 22 as its price struck above $88,500, a four-week high. This rally in Bitcoin prices has been supported by the strong performance of U.S. BTC-spot ETFs, which have seen modest gains as the market sentiment improves.

The renewed institutional interest in Bitcoin ETFs is a positive sign for the crypto market, as it indicates that institutional investors are increasingly viewing Bitcoin as a viable investment option. The acquisition of over 529,000 BTC by U.S. spot Bitcoin ETFs since January 2024 further underscores this growing demand, as it surpasses the 249,725 BTC mined during the same period. This influx of capital into Bitcoin ETFs is likely to drive the price of Bitcoin higher as the crypto market continues to gain momentum.