Bitcoin ETFs Near $50 Billion Inflows After $1 Billion Surge

US Spot Bitcoin ETFs (exchange-traded funds) are nearing $50 billion in cumulative net inflows after resuming their positive flows streak with $1 billion inflows over the last two days. Data shows the cumulative net inflows for the ETFs stands at $49.622 billion. This is after the funds’ multi-day inflow streak was interrupted with $342.2 million outflows on July 1.

Following the outflows on July 1, the funds quickly resumed their trend at full force. The data shows that the spot Bitcoin ETFs collectively posted over $1 billion in net daily inflows over July 2 and July 3. On July 2, $407.8 million entered the funds. The following trading session, investors poured $601.8 million into the ETFs, their strongest net daily inflows since May 22.

BlackRock’s IBIT, which has a commanding lead in terms of cumulative net daily inflows with its reserves of over $52.6 billion, retreated from its usual trend on July 2 after not recording any new flows. Investors then went on to add $224.5 million to the ETF’s reserves the next day. The fund also generates more fee revenue for BlackRock than its iShares S&P 500 ETF, which is the asset manager’s largest ETF. According to an analyst, IBIT is the 3rd largest revenue-generating ETF for BlackRock out of 1,197 funds. The analyst also added that IBIT is just $9 billion away from being BlackRock’s highest fee generating ETF.

Fidelity's FBTC led the charge, adding $184 million on Wednesday and $237.1 million on Thursday. BlackRock's IBIT, typically the dominant player, had a quiet start to July with two consecutive days of zero flows but rebounded strongly on Thursday, adding $224.5 million. Prior to Tuesday's outflows, the combined Bitcoin ETFs had enjoyed a 15-day net inflow streak totaling $4.7 billion, with BlackRock's IBIT accounting for $3.8 billion or 81% of the net inflows.

The resurgence in inflows coincides with a positive price action for Bitcoin, which briefly surpassed $110,000 on Thursday before correcting. This price movement has contributed to the ETFs nearing $128 billion in assets under management, with IBIT leading the way at $73.6 billion in AUM. The substantial inflows reflect a continued risk-on sentiment among investors, even as Bitcoin approaches all-time highs. This sentiment is further supported by the fact that Bitcoin dominance has risen to 64.6%, a level historically associated with altcoin outperformance. A reversal in this trend could potentially trigger an altcoin season, especially if Bitcoin consolidates near its all-time high levels.

The inflows into Bitcoin ETFs are part of a broader trend of institutional demand for cryptocurrencies. The positive price action and the continued inflows into the ETFs suggest that investors remain bullish on Bitcoin despite the recent volatility. The ETFs have also witnessed their highest daily volume since May, generating $5.3 billion on Thursday, with BlackRock's IBIT leading the way at $4.1 billion. This volume highlights the growing interest in Bitcoin ETFs and their increasing role in the broader cryptocurrency market.