Bitcoin ETFs See Unprecedented Inflows as Institutional Demand Soars

Bitcoin ETFs in the US have recorded six consecutive days of inflows, totaling $250 million, signaling a resurgence in institutional interest.

A person in a white shirt pointing at a large screen displaying a rising stock chart, symbolizing Bitcoin
Photography by Tima Miroshnichenko on Pexels
Published: Friday, 01 November 2024 17:02 (EDT)
By Carlos Martinez

The US spot Bitcoin exchange-traded funds (ETFs) market has experienced a remarkable streak of inflows, with $250 million pouring into these products over the past week. This marks the sixth consecutive day of net inflows, reflecting a growing appetite among institutional investors for regulated Bitcoin exposure.

Leading the charge is BlackRock's iShares Bitcoin Trust (IBIT), which saw a staggering $75.5 million in inflows on August 23rd alone. Launched in April 2024, IBIT has rapidly ascended to become the largest spot Bitcoin ETF, boasting over $20 billion in assets under management. Major financial institutions like Morgan Stanley, Goldman Sachs, and various pension funds have contributed to its impressive growth.

Fidelity's Wise Origin Bitcoin Trust also reported a significant inflow of $9.2 million, while the ARK 21Shares Bitcoin ETF added $7.8 million. Smaller players in the space, such as VanEck and WisdomTree, have also benefited from the renewed interest, each seeing several million dollars in new investments.

In contrast, Grayscale's Bitcoin Trust (GBTC) continues to struggle, with $28.4 million in outflows as investors pivot to more cost-effective options. Since converting to an ETF structure in 2024, GBTC has lost over $20 billion in assets.

Overall, the consistent inflows into Bitcoin ETFs underscore a strengthening conviction among institutional investors, who are increasingly viewing these products as a gateway to the burgeoning Bitcoin market.

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