- US spot Bitcoin ETFs are seeing net inflows, indicating growing confidence.
- Hong Kong ETFs Experience Outflows, Trading Volume of US Spot Bitcoin ETFs Declines Globally.
Today marks an important moment for Bitcoin [BTC] enthusiasts, as US Bitcoin Exchange Traded Funds (ETFs) have returned to net inflows.
After four consecutive weeks of outflows, total inflows reached $116.8 million last week. This revival in investor confidence comes amid a 1.98% price drop in the leading cryptocurrency in the past 24 hours.
Increased investor interest
Despite the price uncertainty, there has been a notable increase in investor interest, as evidenced by recent developments. Bracebridge Capital announced a $363 million investment in spot Bitcoin ETFs through a SEC filing.
Additionally, JP Morgan clients also recently invested $731,246 in spot Bitcoin ETFs, as revealed on May 14.
Additionally, US banking giant Wells Fargo joined the fray, with 2,245 GBTC shares worth $121,207, and the list goes on.
Drawing on the same insight, Eric Balchunas, senior ETF analyst at Bloomberg, turned to X (formerly Twitter) and noted:
Source: Eric Balchunas/X
Additionally, BlackRock’s Bitcoin ETF, the iShares Bitcoin Trust (IBIT), has reached a major milestone, surpassing its peers in the number of corporate holders.
Since its inception to date, the BlackRock Bitcoin ETF has attracted 250 corporate holders.
Amid growing investor interest, there are widespread discussions within the cryptocurrency community.
In a recent tweet, an X user @SirJonasz shed light on the Bitcoin ETF exposure of leading banks
“They FUD #crypto in public and buy privately.”
On similar lines, @Vivek4real_ added,
“We are entering a new era.”
Source: Vivek/X
According to the metric analysis on the chain The blockGrayscale’s Bitcoin Trust saw outflows of $171.1 million last week, contrasting with inflows of $63 million on May 3.
Fidelity’s FBTC led with inflows of $111.3 million, followed by ARKB with $82.8 million. BlackRock’s IBIT had inflows of $48.1 million, marking a slowdown from peak inflows in March.
Take it easy
Amid these massive inflows, however, Hong Kong ETFs strangely saw significant outflows on May 13.
Dates of Farside Investors indicates that spot bitcoin ETFs offered by ChinaAMC, Harvest Global, Bosera and Hashkey collectively saw outflows totaling $32.7 million.
Source: Farside Investors
Furthermore, despite a reversal in flows, trading volume for US spot bitcoin ETFs fell to $7.4 billion last week, down from the previous week’s $11 billion, as reported by The Block’s data dashboard.
Source: Het Blok
This volume decline was also reflected in the global market for exchange-traded products, which fell from a weekly average of $17 billion in April to $8 billion.
Finally, daily trading volume dropped significantly after hitting an all-time high of $9.9 billion on March 5, coinciding with Bitcoin’s rise past its previous cycle peak of around $69,000.
So as things evolve, the question remains unanswered: can increased institutional investment in Bitcoin ETFs reshape the way people enter Bitcoin?