Institutional Bitcoin ETF holdings exceed 879k BTC.
Bullish sentiment suggests potential for continued market growth.
As of June 5, 2024, investment institutions collectively hold 879,191 BTC, underscoring robust confidence in Bitcoin amid significant movements in the ETF market. Adding on, U.S. spot Bitcoin exchange-traded funds (ETFs) have seen an unprecedented 18-day streak of positive net inflows, totaling $217.78 million. BlackRock’s IBIT ETF led the surge, attracting $350 million on Thursday alone, marking it as the largest spot Bitcoin ETF by net assets.
Other notable ETFs, including those from Fidelity and VanEck, also experienced positive inflows, albeit on a smaller scale compared to BlackRock’s IBIT. However, not all ETFs shared this positive momentum. Ark Invest’s ARKB ETF faced significant net outflows of $96.6 million, Grayscale’s recently converted GBTC saw $37.5 million in net outflows, and Bitwise’s BITB reported net outflows of $3 million. In contrast, Invesco’s BTCO and four other ETFs reported no flows on Thursday.
ETF Boom Vs MicroStrategy Concerns
Since their inception in January, the 11 spot Bitcoin ETFs have amassed a cumulative net inflow of $15.56 billion. This recent streak of net inflows reflects a recovery from the stagnation observed in April and May, despite being lower than the peak levels in March. The sustained inflows, particularly driven by BlackRock’s IBIT, highlight a continued strong interest and confidence in Bitcoin among investors.
Two days prior, U.S.-based spot Bitcoin ETFs marked their 15th consecutive session of net inflows, with the influx of funds and a Bitcoin price rally pushing BlackRock’s IBIT assets under management past $20 billion for the first time. According to Bloomberg Intelligence’s senior ETF analyst Eric Balchunas, ETFs pulled in approximately $2.4 billion in fresh money over the past month, the third-largest net inflow across the entire ETF market.
Despite the positive sentiment towards Bitcoin’s strong supporters, some institutions are betting on a decline in MicroStrategy’s stock price. Currently, there are $6.9 billion in major short positions against Michael Saylor’s software intelligence firm. As of June 6, MicroStrategy has 18 short positions listed on Fintel’s “The Big Shorts” list, with the largest position at $2.4 billion, making it the 27th-largest net short position among institutions.
However, short-seller confidence in MicroStrategy has waned, as evidenced by a nearly 50% decrease in the short-interest ratio over the last six months, from 3.1 days to 1.5 days. This decrease suggests a reduced risk of a short squeeze and declining short-seller interest. Since December 2023, MicroStrategy’s stock price has rallied significantly from $570 to $1,656, reflecting a strong market performance.
The developments in both Bitcoin ETF inflows and MicroStrategy’s stock underscore a dynamic and evolving landscape for institutional investments in the cryptocurrency space.