ETFs
Bitcoin ETF Flows Jump, Hit Second Highest Daily Mark
Bitcoin ETF Flows Jump, Hit Second Highest Daily Mark
Net flows into Bitcoin spot exchange-traded funds hit $880 million on Tuesday, the second-highest daily level in their five-month history, as momentum picks up for the 11 new products.
THE Fidelity Wise Origin Bitcoin Fund (FBTC) led Tuesday’s surge with nearly $379 million in admissions, followed by BlackRock iShares Bitcoin Trust (IBIT)that represents 274.4 million dollars ARK 21Shares Bitcoin ETF (ARKB)Capital inflows amounted to $139 million, according to data from British asset manager Farside Investors.
“Fidelity is not kidding,” Eric Balchunas, senior ETF analyst at Bloomberg tweeted. “The second best day of my life.”
The products generated about $3.3 billion in inflows last month, resuming their breakneck pace after an early spring slowdown. They reached nearly $15 billion in total flows amid growing appetite for cryptocurrency-focused investments and despite recent concern over so-called risky assets.
The fund’s total assets under management are approaching $55 billion. Ten of the funds launched on Jan. 11, a day after the Securities and Exchange Commission approved them to begin trading.
Bitcoin surpassed $71,000 on Wednesday, its highest level since early April. The largest digital asset by market capitalization is up 1.5% in the past 24 hours and more than 6% in the past seven days. Meanwhile, the SEC’s approval of a rules change that would list Ethereum spot ETFs has increased the likelihood that these products will begin trading in the near future, pushing the price of ether, the second highest large crypto in market value, at levels not seen since early 2022.
GBTC generates entries
Tuesday, even Grayscale Bitcoin Trust (GBTC) finished in positive territory, one of the few times it has done so since converting from a trust with $28 million in inflows. IBIT and GBTC control the most assets among spot bitcoin ETFs.
In a note to etf.com, Mark Connors, managing director and head of global macro strategy at Onramp, a Dallas-based financial services firm focused on bitcoin, attributed the recent increase to growing judicial and now legislative support in favor of bitcoin. “Industry adoption goes ‘terra incognito’.”
In a Telegram exchange with etf.com, Noelle Acheson, author of the newsletter Crypto is Macro Now, called “the macro setup for BTC (bitcoin)… strong,” with yields falling and expectations of increasing rate cuts. “Both are strong indicators of liquidity: BTC continues to be one of the most macroliquidity-sensitive assets.”
The story continues
She added that “we’re probably seeing the result of some of the big investment platforms finally having their systems ready to onboard clients.”
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