Bitcoin Spot ETF Gains Traction, Inflows Reach $726 Million
Bitcoin Spot ETF Gains Traction, Inflows Reach $726 Million
Bitcoin ETFs have recently experienced significant inflows, particularly after a sluggish start in early May. According to data from Farside, U.S. Bitcoin spot ETFs recorded inflows totaling $726 million over four days (May 13-16, 2024).
These inflows were evenly distributed, with 8 out of 11 U.S. ETFs reporting positive inflows. The IBIT ETF from BlackRock had the largest daily inflow of $93.7 million, the highest since April 12, bringing its total inflows to $15.6 billion.
Additionally, Fidelity's FBTC ETF continued to show strong performance by adding $67.1 million, raising its total net inflows to $8.4 billion. The Grayscale Bitcoin Trust (GBTC), which had previously seen outflows, attracted new interest with investments totaling $27 million and $4.6 million on May 16 and 17, respectively.
Interestingly, data from March 24 indicates that seven of the largest U.S. spot ETFs collectively manage $5.65 billion in volume, according to research firm Santiment, shared on X (formerly Twitter) on May 16.
937 Investment Firms Embrace U.S. Bitcoin Spot ETFs
A notable aspect of this growth is the increasing institutional participation. According to Form 13F filings, 937 U.S. companies had exposure to Bitcoin ETFs in the first quarter. This far exceeds the 95 companies that invested in gold ETFs during the same period after their launch.
Reflecting on the substantial number of companies investing in Bitcoin spot ETFs, Matt Hougan, Chief Investment Officer at Bitwise, expressed strong optimism. He noted that while filings indicate that professional investors hold between 7% and 10% of Bitcoin ETF AUM, the initial 13F filings may only represent a preliminary commitment before significant institutional allocations to this new asset class.
Hougan also pointed out that many disclosed allocations are just a small fraction of institutional AUM, suggesting that many firms are likely to increase their allocation to 1% of their assets over time.
The growing adoption of Bitcoin as a legitimate investment asset among institutions has also impacted its price, which has risen five percent in the past week, trading at $66,300.
Conclusion
The recent surge in inflows into Bitcoin spot ETFs, totaling $726 million in mid-May, signals a robust resurgence in investor interest. With 8 out of 11 U.S. ETFs reporting positive inflows and major players like BlackRock and Fidelity showing significant gains, the market is witnessing a notable shift. Institutional participation has been a key driver, with an impressive 937 U.S. companies now exposed to Bitcoin ETFs, far surpassing initial expectations and outpacing early gold ETF adoption.
Matt Hougan's optimism underscores the potential for even greater institutional allocation as Bitcoin cements its status as a legitimate investment asset. The recent price increase to $66,300 reflects this growing confidence. As institutions continue to integrate Bitcoin into their portfolios, the market is poised for further growth and stability.
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