US Bitcoin ETFs Record 5-Day Inflow Streak, BlackRock Leads

TLDR

• BlackRock’s iShares Bitcoin Trust (IBIT) led with $184 million in inflows
• US Bitcoin ETFs saw 5 consecutive days of positive inflows
• Total net inflows for US Bitcoin ETFs reached $246 million this week
• GBTC’s massive outflows have slowed down in recent weeks
• Fidelity and ARK/21Shares ETFs faced some outflows

US Bitcoin exchange-traded funds (ETFs) have marked a significant milestone, recording positive inflows for five consecutive days.

This trend highlights growing investor interest in Bitcoin-based financial products, with BlackRock’s iShares Bitcoin Trust (IBIT) leading the pack.

On Wednesday, US-listed spot Bitcoin ETFs collectively attracted approximately $106 million in new investments. BlackRock’s IBIT stood out, pulling in around $184 million in net inflows.

This strong performance by IBIT contributed significantly to the overall positive trend in the Bitcoin ETF market.

Data from Farside Investors shows that the total net inflows for US Bitcoin ETFs have reached $246 million so far this week. This figure represents a notable uptick in investor appetite for these relatively new financial instruments.

While BlackRock’s fund saw substantial inflows, other ETFs in the market experienced mixed results. Bitwise’s Bitcoin ETF (BITB) added about $2 million in new capital.

However, not all funds saw positive flows. Fidelity’s Bitcoin Fund (FBTC) and ARK Invest/21Shares’s Bitcoin ETF (ARKB) faced outflows of approximately $33 million and $47 million, respectively.

Bitcoin ETF Flow Farside Investors

The Grayscale Bitcoin Trust (GBTC), which recently converted to an ETF structure, reported zero flows on Wednesday. This marks a significant change from the massive outflows GBTC experienced immediately following its conversion.

Since becoming an ETF, GBTC has seen over $20 billion in withdrawals. However, these outflows have noticeably slowed down in recent weeks, potentially signaling a stabilization in investor sentiment towards the fund.

The slowing of GBTC outflows, combined with increasing inflows to other funds, especially BlackRock’s IBIT, has contributed to the overall positive trend in the US Bitcoin ETF market.

This shift suggests that investors may be reallocating their Bitcoin-related investments rather than exiting the market entirely.

The consecutive days of inflows come at a time when the cryptocurrency market has been experiencing volatility. Despite market fluctuations, the sustained interest in Bitcoin ETFs indicates that institutional and retail investors alike are looking for regulated, traditional investment vehicles to gain exposure to Bitcoin.

It’s worth noting that while the five-day inflow streak is a positive sign for the Bitcoin ETF market, it’s still a relatively short time frame in the grand scheme of investment trends.

Longer-term patterns will need to be observed to determine if this represents a lasting shift in investor behavior or a temporary fluctuation.

The performance of these ETFs is being closely watched by market participants and regulators alike. The success or failure of Bitcoin ETFs could have implications for the broader adoption of cryptocurrency-based financial products in traditional markets.