US Spot Bitcoin ETFs Experience Slowed Inflow, Yet Maintain Positive Streak

The 11 U.S. spot bitcoin ETFs witnessed net inflows of $11.80 million on Thursday, extending a positive streak to three days. Despite continued inflows, the pace has notably slowed since Tuesday’s net inflows of $31 million.

Key Performers and Fund Movements

On Thursday, the cryptocurrency market witnessed notable inflows into several Bitcoin ETFs, highlighting growing investor interest in digital assets. Among the various funds, Bitwise's BITB emerged as the frontrunner, attracting substantial investments.

Bitwise's BITB Spearheads Inflows:

Bitwise’s BITB led the charge, drawing in a remarkable $8 million. This significant influx underscores the fund's increasing appeal to investors seeking exposure to Bitcoin.

Fidelity's FBTC Follows Closely:

Not far behind, Fidelity’s FBTC also showcased strong performance, securing nearly $7 million in new investments. Fidelity’s consistent inflows indicate sustained confidence in their Bitcoin ETF.

Franklin Templeton’s Impressive Surge:

Franklin Templeton's spot Bitcoin ETF recorded net inflows of $3.6 million. This marks the fund's largest single-day inflow since mid-May, signaling renewed investor interest and optimism.

Invesco and Galaxy Digital's Contributions:

Invesco and Galaxy Digital’s collaborative BTCO ETF saw net inflows amounting to $3 million. This partnership continues to attract investor capital, further solidifying its position in the market.

ARK Invest and 21Shares' Addition:

ARK Invest and 21Shares’ ARKB accumulated $1.84 million on Thursday. This addition highlights the fund’s steady growth and the strategic moves by ARK Invest and 21Shares to attract more investors.

Noteworthy Outflows and Stagnant Funds

While several Bitcoin ETFs experienced significant inflows, there were notable outflows as well.

Grayscale's GBTC Records Outflows:

Grayscale’s GBTC was the only fund to experience net outflows, which amounted to $11.5 million. This outflow contrasts sharply with the positive momentum seen in other ETFs, raising questions about investor sentiment towards GBTC.

The recent inflows into Bitcoin ETFs, led by Bitwise's BITB, reflect a growing confidence in digital assets among investors. However, the outflows from Grayscale’s GBTC indicate that investor preferences may be shifting. As the market evolves, these trends will be critical to watch for insights into the future direction of Bitcoin investments.

BlackRock's IBIT Stays Neutral:

BlackRock’s IBIT, the largest spot bitcoin ETF in terms of net asset value, reported zero flows for the fifth consecutive day despite having $520 million worth traded on Thursday.

Zero Flows from Other Funds:

VanEck, Valkyrie, WisdomTree, and Hashdex also recorded zero flows for the day. Notably, VanEck surprised the market by filing for a spot Solana ETF, which spurred a 10% increase in the token price.

Market Context and Overall Performance

Daily Trade Volume Decline:

The daily trade volume for the 11 bitcoin funds on Thursday was approximately $920 million, significantly lower than their March high of over $10 billion.

Total Accumulated Inflows:

Since their inception in January, the ETFs have accumulated total net inflows of $14.45 billion.

Bitcoin Price Movement:

Meanwhile, the price of bitcoin edged up 1% in the past 24 hours, reaching $61,677 at the time of publication, according to The Block’s bitcoin price page.

Bottom Line

While the U.S. spot bitcoin ETFs continue to see positive net inflows, the pace has decelerated from earlier in the week. Bitwise and Fidelity led the inflows, while Grayscale faced significant outflows. Despite the slowed inflow pace and lower trade volume, the cumulative performance since January remains robust. The market continues to evolve with new developments, such as VanEck’s application for a spot Solana ETF, indicating ongoing interest and innovation in the cryptocurrency ETF space.

In conclusion, the U.S. spot bitcoin ETF market experienced varied movements with notable trends in fund inflows and outflows observed throughout the week. Despite a slowdown from peak inflows earlier in the week, Bitwise and Fidelity led with substantial new investments, contrasting with significant outflows from Grayscale's GBTC. Market dynamics were further influenced by the filing for a Solana ETF by VanEck, reflecting ongoing innovation and diversification within the cryptocurrency ETF landscape. While daily trade volumes moderated significantly from their peak, the cumulative inflow since inception remains substantial, underscoring sustained investor interest amid evolving market conditions.