Bitcoin
Bitcoin Spot ETF Flows Jump to Second Highest Daily Mark
Bitcoin Spot ETF Flows Jump to Second Highest Daily Mark
Net flows into spot bitcoin exchange-traded funds hit $880 million on Tuesday, the second-highest daily level in its five-month history, as momentum accelerates for the 11 fledgling products.
O Fidelity Wise Origin Bitcoin Fund (FBTC) led Tuesday’s surge with nearly $379 million in inflows, followed by BlackRock’s iShares Bitcoin Trust (IBIT)is US$ 274.4 million ARK 21Shares Bitcoin ETF (ARKB)of US$139 million in inflows, according to data from UK-based asset manager Farside Investors.
“Loyalty is no joke,” Eric Balchunas, senior ETF analyst at Bloomberg tweeted. “Second best day ever.”
Products generated about $3.3 billion in flows last month, resuming their accelerated pace after a slowdown in early spring. They have reached nearly $15 billion in total flows amid a growing appetite for cryptocurrency-focused investments and despite recent angst over so-called risk assets.
The total assets under management of the funds are close to 55 billion dollars. Ten of the funds launched on Jan. 11, the day after the Securities and Exchange Commission approved their start of 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 last 24 hours and has added more than 6% during the last seven days. Meanwhile, the SEC’s approval of a rule change that would list spot Ethereum ETFs has increased the likelihood that these products will begin trading in the near future, pushing the price of ether, the second-largest cryptocurrency by market cap, to levels not seen since the beginning of 2022. .
GBTC generates flows
On Tuesday, until Grayscale Bitcoin Trust (GBTC) ended in positive territory, one of the few times it has done so since converting a trust with inflows of $28 million. 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 surge to growing judicial and now legislative support for bitcoin. “Industry adoption is entering ‘terra incognita’.”
In a Telegram exchange with etf.com, Noelle Acheson, author of the Crypto is Macro Now newsletter, called “the macro setup for BTC (bitcoin)…strong,” with yields falling and expectations of rate cuts rising. “Both are strong indicators of liquidity – BTC continues to be one of the most sensitive assets to macro liquidity.”
The story continues
She added that “we are probably seeing the result of some of the big investment platforms finally having their systems ready to onboard clients.”
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