Inflows of $45m observed in Bitcoin ETFs
Bitcoin Exchange-Traded Funds (ETFs) saw a notable increase in net inflows on May 28, with a total of $45 million being invested. This marks the 11th consecutive day of positive capital flow for these ETFs, despite the Grayscale Bitcoin Trust ETF (GBTC) experiencing outflows of $105.2 million.
The inflow of funds into these ETFs was mainly driven by BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Fund (FBTC), overshadowing the outflows from GBTC. In fact, IBIT saw the largest inflow of $102.5 million, making it the most popular ETF in terms of investment. FBTC followed closely behind with an inflow of $34.3 million.
However, not all ETFs experienced the same success. Franklin Bitcoin ETF (EZBC) and VanEck Bitcoin Trust (HODL) reported zero inflows on the same day.
The significant outflow from GBTC led to a change in its status as the largest spot ETF in terms of BTC holdings. This shift is primarily attributed to the higher costs associated with GBTC compared to other ETFs, prompting investors to withdraw their funds. Prior to converting to an ETF, Grayscale held over 600,000 BTC. After 96 days of trading, BlackRock’s IBIT surpassed GBTC in BTC holdings, with 288,671 BTC worth $19.7 billion, compared to GBTC’s 287,488 BTC worth $19.6 billion.
Since the launch of Bitcoin ETFs in January in the United States, these funds have acquired over 566,662 BTC, as reported by market analyst Quinten Francois. In total, these ETFs now manage over 840,000 BTC.
Despite the consistent inflows of capital, Bitcoin still needs to maintain a price above $70,000 to instill confidence in investors. Currently, the leading cryptocurrency is priced at $67,900. It is worth noting that BTC briefly reached a peak of around $70,590 two days ago before experiencing a decline.
