Bitrabo Editorial
The Spot Bitcoin ETF market is showing signs of resurgence, with two consecutive days of positive inflows totaling $217 million. This upward trend marks a shift from recent weeks where inflows had been stagnant since mid-March.
US Bitcoin ETFs Gaining Momentum
The Grayscale Bitcoin Trust (GBTC), a pioneering crypto investment product, received an inflow of $3.9 million, indicating a positive trend for the second consecutive day. This suggests that the outflows at GBTC may have ceased, potentially easing selling pressure.
BlackRock’s IBIT also experienced inflows for the second day in a row, bringing in $21.5 million after several days of zero or negative flows. Fidelity stood out with the strongest inflows, attracting $99.2 million.
Other ETF providers such as Bitwise, ARK, Invesco, Franklin, and VanEck also observed positive flows, albeit to a lesser extent compared to the leading providers. Bitwise saw an addition of $2.1 million, ARK impressed with $75.6 million, Invesco secured $11.1 million, while Franklin and VanEck each recorded $1.8 million. This overall uptrend across various providers indicates a broad recovery in investor sentiment towards spot Bitcoin ETFs.
Yesterday’s ETF inflows by @FarsideUK
We had $217 million of inflows and all were positive.
Fidelity had $99 million, Ark $75 million and $GBTC $3.9 million.
Blackrock did $21.5 million.
Price in range of $63k-$65K.
As long as inflows stays positive here the supply is… pic.com/iKUNFCLLhK
— WhalePanda (@WhalePanda) May 7, 2024
Bloomberg ETF specialist Eric Balchunas highlighted the rarity of uniformly positive inflows and the resilience of ETF investors. Balchunas noted, “First time ever 1D flows all green, no red for the Bitcoin Bunch. Not going to spike the football like some did during the outflow period but will point out that over 95% of the ETF investors held on during what was a pretty nasty and persistent downturn.”
Adam Blumberg, the co-founder of Interaxis, commended ETF investors for their mature approach, emphasizing their focus on the long term and their ability to withstand volatility. Blumberg explained, “ETF investors aren’t trading. They’re not degens. They expect the volatility, and are in for the long-term benefit.”
A recent 13F filing revealed that Hightower, a $130 billion asset manager, invested $68 million in spot Bitcoin ETFs. The diverse investments in Bitcoin ETFs from Hightower, including Grayscale, Fidelity, BlackRock, ARK, Bitwise, and Franklin Templeton, demonstrate a significant endorsement of Bitcoin from traditional financial institutions.
HighTower 13F today discloses the following positions:
Grayscale BTC: $44,838,000 (709,956 shares) Fidelity Bitcoin ETF: $12,410,000 (200,084 shares) BlackRock Bitcoin ETF: $7,621,000 (188,397 shares) ARK Bitcoin ETF: $1,702,000 (23,964 shares) Bitwise Bitcoin ETF: $988,000…
— MacroScope (@MacroScope17) May 6, 2024
Hunter Horsley, CEO of Bitwise, commented on Hightower’s investment, indicating a positive outlook for Bitcoin’s acceptance by traditional financial firms. “Hightower is one of the largest RIA firms in the country, and highly admired. 2024 is going to have more & more stories of Bitcoin embraced by large traditional firms,” he noted.
Currently, BTC is trading at $64,273.