Record Inflows on June 4, 2024
U.S.-based Bitcoin exchange-traded funds (ETFs) have once again made headlines, demonstrating their resilience and growing popularity. On June 4, 2024, these ETFs experienced a significant influx of funds, totaling an impressive $887 million in combined net inflows1. This remarkable figure comes close to the record-breaking $1.05 billion in daily net inflows seen on March 12.
Let’s break down the numbers:
Fidelity Wise Origin Bitcoin Fund (FBTC)led the pack with a whopping $378.7 million in inflows.
BlackRock’s iShares Bitcoin Trust (IBIT)followed closely with $275 million.
The ARK 21Shares Bitcoin ETF (ARKB)attracted over $138 million in net inflows, marking its highest influx since March 12 and aligning with a record-breaking day before Bitcoin hit its all-time high on March 13.
Interestingly, Grayscale Bitcoin Trust (GBTC)also saw a rare inflow day at $28.2 million, marking its seventh inflow day since transitioning to a spot ETF in January. However, GBTC faced significant net outflows exceeding $17.8 billion due to its relatively high management fee and narrowed discount.
Growing Confidence in Bitcoin as an Investment Asset
The persistent demand for Bitcoin ETFs highlights the increasing acceptance and interest in cryptocurrencies among institutional and retail investors alike. Since their inception, the 11 spot Bitcoin ETFs have collectively amassed a staggering $14.57 billion in total net inflows. Notably, BlackRock’s IBIT has now surpassed the $20 billion milestone in assets under management, solidifying its position as a leading player in the Bitcoin ETF market.
As Bitcoin surged by 2.9% to $71,000 within the last 24 hours, ETFs from Invesco Galaxy, Franklin Templeton, WisdomTree, and Hashdex observed no demand on June 4. These developments underscore the increasing investor appetite for Bitcoin investments through ETFs, highlighting the growing confidence in this asset class despite the challenges some ETFs face in attracting inflows.
Spot Ethereum ETFs on the Horizon
Looking ahead, the U.S. market eagerly anticipates the launch of spot Ethereum ETFs. Major issuers have recently submitted amended registration statements to the Securities and Exchange Commission. Analysts expect these Ethereum ETFs to attract $3.1 billion to $4.8 billion in net inflows over the first five months of trading.
In summary, the “third wave” of institutional investment in cryptocurrencies is turning into a tidal wave. As the market evolves, investors remain optimistic about the long-term potential of Bitcoin and other digital assets. Whether you’re a seasoned trader or a curious observer, keep an eye on these ETFs—they’re shaping the future of crypto investment
