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 is a notable reversal from the previous weeks where inflows inflows stagnated since mid-March.
US Bitcoin ETFs Regain Momentum
Grayscale Bitcoin Trust (GBTC), a pioneer in crypto investment products, once again attracted capital with an inflow of $3.9 million. This positive trend for the second day in a row underlines that the outflows at GBTC may have come to a halt, which could remove significant selling pressure.
BlackRock’s IBIT also saw inflows for the second day in a row after seeing zero net inflows on six of the last seven days and one day of outflows, raising $21.5 million. Fidelity, another heavyweight in the financial sector, outshone others with the strongest inflows, drawing $99.2 million.
Other ETF providers like Bitwise, ARK, Invesco, Franklin, and VanEck also saw positive flows, although less pronounced compared to the leaders. Bitwise added $2.1 million, ARK impressed with $75.6 million, Invesco secured $11.1 million, while both Franklin and VanEck recorded $1.8 million each. This collective uptrend across diverse providers suggests a broad-based recovery in investor sentiment towards spot Bitcoin ETFs.
Yesterday’s ETF inflows by @FarsideUK
We had $217 million of inflows and all were positive.
Fidelity had $99 million, Ark $75 million and $GBTC $3.9 million.
Blackrock did $21.5 million.
Price in range of $63k-$65K.
As long as inflows stays positive here the supply is… pic.twitter.com/iKUNFCLLhK
— WhalePanda (@WhalePanda) May 7, 2024
Bloomberg ETF specialist Eric Balchunas commented on the phenomenon, noting the rarity of uniformly positive inflows and the resilience of ETF investors. He said, “First time ever 1D flows all green, no red for the Bitcoin Bunch. Not going to spike the football like some did during the outflow period but will point out that over 95% of the ETF investors HOLD-ed during what was a pretty nasty and persistent downturn. Will same happen next time? Who knows, but track record says it will be pretty high % again. As we said, outflows will happen, so will inflows but over time two things tend to be true for ETFs: net growth and relatively strong hands.”
Adam Blumberg, the co-founder of Interaxis, commented on the mature behavior of ETF investors, emphasizing their long-term perspective and resilience to volatility. “ETF investors aren’t trading. They’re not degens. They expect the volatility, and in for the long term benefit. When they’re investing 1-5%, the short term downturns also have a minimal effect on 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 spot Bitcoin ETFs. The diverse set of investments from Hightower in Bitcoin ETFs such as Grayscale, Fidelity, BlackRock, ARK, Bitwise, and Franklin Templeton illustrates a 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 news of Hightower’s investment, indicating a positive outlook for the future interaction between traditional finance and Bitcoin. “Hightower is one of the largest RIA firms in the country, and highly admired. 2024 is going to have more & more stories of Bitcoin embraced by large traditional firms,” he remarked.
At press time, BTC traded at $64,273.
Featured image created with DALL·E, chart from TradingView.com
