US Bitcoin ETFs Witness Second-Largest Inflows as Bitcoin's Value Rallies
Summary:
U.S.-based Bitcoin ETFs have collectively recorded their second-highest net inflow day at $886.6 million. The most significant contributions came from Fidelity Wise Origin Bitcoin Fund, BlackRock’s iShares Bitcoin Trust, and ARK 21Shares Bitcoin ETF. In contrast, a rare inflow of $28.2 million was observed in the Grayscale Bitcoin Trust, an entity otherwise known for its high outflows. As this surge in Bitcoin-specific ETF interest unfolds, Bitcoin's value has experienced a 2.9% increase over the past day.
Bitcoin exchange-traded funds (ETFs) based in the United States have recorded their second-largest combined net inflow in history, totaling $886.6 million, as indicated by preliminary figures. The Fidelity Wise Origin Bitcoin Fund (FBTC) attracted the majority of these inflows, amassing $378.7 million, with BlackRock’s iShares Bitcoin Trust (IBIT) close behind, generating inflows of $274.4 million, early figures from Farside Investors reveal. The ARK 21Shares Bitcoin ETF (ARKB), with $138.7 million in net inflows, was the third strongest performer. These funds haven't seen such high net inflows since March 12, which saw a record-breaking inflow of $1.04 billion and coincided with Bitcoin reaching its highest-ever value of $73,679 the following day.
Data from Farside also highlighted an unusual inflow of $28.2 million into the Grayscale Bitcoin Trust (GBTC), marking only the seventh time this has occurred since the fund switched from a closed-end fund to a spot ETF in January. Despite this, GBTC has experienced net outflows exceeding $17.8 billion, largely credited to its steep 1.5% management fee and a decreased discount, which has encouraged a number of holders to part with their shares. The fund's Bitcoin holdings have also reduced significantly from an initial 620,000 BTC to the current 285,481 BTC, valued at $20.2 billion, based on data from the Apollo Bitcoin Tracker.
President of ETF Store, Nate Geraci, expressed surprise at this demand for Bitcoin ETFs, considering earlier criticisms that there would be limited interest. Eric Balchunas, a Bloomberg ETF analyst, noted substantial activity all around for the ETF sector, with an exception to the Hashdex ETF, which has struggled to entice inflows since being launched considerably later than the other ETFs.
Data reveals a lack of demand for Bitcoin ETFs from Invesco Galaxy, Franklin Templeton, WisdomTree, and Hashdex, with none of these ETFs recording any flows for June 4. This comes at a time when Bitcoin has seen a 2.9% surge to a value of $71,000 over the past 24 hours.
(Note: The article was updated on June 5, 4:20 am UTC to include more recent information.)
Published At
6/5/2024 5:52:00 AM
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