ETFs
Spot Bitcoin ETFs Surpass $300 Million in Inflows
For the second time in May, spot Bitcoin (BTC) ETFs surpassed $300 million in inflows, with significant contributions from BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC).
Farside Investors Market Data noted that these investment products saw $305 million in inflows on May 21 despite several ETF products, including the Grayscale Bitcoin Trust (GBTC) reporting no inflows. Notably, only two products saw inflows, while two saw outflows.
BlackRock’s IBIT led inflows with $290 million, while Fidelity’s FBTC reported an inflow of $25.8 million. The Bitwise Bitcoin ETF (BITB) saw outflows amounting to $4.2 million, and the VanEck Bitcoin Trust ETF (HODL) also saw an outflow of $5.9 million.
Notably, IBIT surpassed FBTC in inflows for the second time this week, recording more substantial inflows for two consecutive days. This comes after FBTC directed the market several times last week, surpassing the IBIT on days when the product saw no flows. The ETF market has now seen $13.17 billion in positive net flows since its launch in January.
The recent wave of influx has contributed to a overvoltage in Bitcoin (BTC), which crossed the $71,000 mark on Tuesday. The price rise has sparked debate within the cryptocurrency community over whether the rally signifies the start of a bull market or whether the market is reaching its peak.
Analyst Eric Balchunas had predicted long-term returns after capital outflows in April. He noted that Bitcoin ETFs have already seen inflows of $1.3 billion in May, offsetting negative inflows in April, bringing total inflows since launch to $12.3 billion.