The Spot Bitcoin ETF market is currently experiencing a resurgence, marked by a second consecutive day of positive inflows totaling $217 million. This increase in investment activity represents a notable reversal from previous weeks when capital flows stagnated since mid-March.
US Bitcoin ETFs regain momentum
Grayscale Bitcoin Trust (GBTC), a pioneer in crypto investment products, has once again attracted capital with an inflow of $3.9 million. This positive trend for the second day in a row, this highlights that outflows on GBTC may have stopped, which could remove significant selling pressure.
BlackRock’s IBIT also recorded inflows for the second consecutive day after noting zero net inflows on six of the last seven days and one day of releases, collecting $21.5 million. Fidelity, another heavyweight in the financial sector, surpassed the others with the largest capital inflows, with $99.2 million.
Other ETF providers like Bitwise, ARK, Invesco, Franklin and VanEck also saw positive flows, although less pronounced than the leaders. Bitwise added $2.1 million, ARK impressed with $75.6 million, Invesco got $11.1 million, while Franklin and VanEck recorded $1.8 million each. This collective uptrend among various providers suggests a widespread recovery in investor confidence in spot Bitcoin ETFs.
Yesterday’s ETF entries by @FarsideUK
We received $217 million in revenue and all of it was positive.
Fidelity had $99 million, Ark had $75 million and $GBTC $3.9 million.
Blackrock earned $21.5 million.
Priced between $63,000 and $65,000.
As long as the entries remain positive here, the supply is… pic.twitter.com/iKUNFCLhK
– WhalePanda (@WhalePanda) May 7, 2024
Eric Balchunas, ETF specialist at Bloomberg, commented on the phenomenon, highlighting the rarity of uniformly positive flows and the resilience of ETF investors. He said, “For the first time, the 1D stream is entirely green, no red for the Bitcoin Bunch. I’m not going to hype football like some did during the runaway period, but I will point out that over 95% of ETF investors HOLDED during what was a pretty nasty and persistent downturn. Will the same thing happen next time? Who knows, but history indicates that this percentage will still be quite high. As we’ve said, outflows will occur, as will inflows, but over time two things tend to hold true for ETFs: net growth and relatively strong hands. »
Adam Blumberg, co-founder of Interaxis, commented on the mature behavior of ETF investors, highlighting their long-term perspective and resilience to volatility. “ETF investors don’t trade. They’re not bad people. They expect volatility and long-term profits. When investing between 1 and 5 percent, short-term downturns also have a minimal effect on the overall portfolio,” he explained.
Adding to the optimism, a recent 13F filing revealed that Hightower, a $130 billion asset manager, purchased $68 million worth of Bitcoin ETFs in cash. Hightower’s diverse set of investments in Bitcoin ETFs such as Grayscale, Fidelity, black rockARK, Bitwise and Franklin Templeton illustrate significant endorsement of Bitcoin from traditional financial institutions.
HighTower 13F today discloses the following positions:
Grayscale BTC: $44,838,000 (709,956 shares)
Fidelity Bitcoin ETF: $12,410,000 (200,084 shares)
BlackRock Bitcoin ETF: $7,621,000 (188,397 shares)
ARK Bitcoin ETF: $1,702,000 (23,964 shares)
Bitwise Bitcoin ETF: $988,000…– MacroScope (@MacroScope17) May 6, 2024
Hunter Horsley, CEO of Bitwise, reacted to the announcement of Hightower’s investment, indicating positive prospects for the future interaction between traditional finance and Bitcoin. “Hightower is one of the largest and widely admired RIA firms in the country. In 2024, there will be more and more stories of Bitcoin being adopted by mainstream large companies,” he remarked.
At press time, BTC was trading at $64,273.
Featured image created with DALL·E, chart from TradingView.com
