On June 3, Bitcoin spot exchange-traded funds (ETFs) experienced a noteworthy $105 million net inflow, marking a streak of 15 consecutive days with positive flows for these ETFs.
Leading the pack, Fidelity ETF FBTC saw a significant influx of $77.0482 million, followed by Bitwise ETF BITB with inflows totaling $14.3145 million.
However, BlackRock’s iShares Bitcoin Trust reported no changes in funds during this period, maintaining a neutral stance.
Similarly, Grayscale’s Bitcoin Trust ETF (GBTC) recorded a daily net outflow of $0.00, indicating stability in investor sentiment.
Bitcoin Hits $70,000
Bitcoin spot ETFs continued to attract sustained net inflows as Bitcoin briefly surged past the $70,000 mark on Monday, marking the first time in a week it reached such levels. However, the price retraced to its familiar trading range, maintaining its sideways movement.
As of the current writing, Bitcoin was trading at approximately $69,000, showing a 2% increase over the past 24 hours. Ethereum’s ether (ETH) remained relatively stable, hovering just below $3,800.
Bitcoin and the broader cryptocurrency market have been in a consolidation phase for over two months since Bitcoin reached its all-time high above $73,000 in March. Analysts from Bitfinex suggest that this correction phase appears to be nearing its conclusion.
The correction from the all-time highs was notably influenced by long-term holders selling off their Bitcoin holdings. However, blockchain data now suggests a reversal of this trend, with these holders beginning to accumulate Bitcoin once more, marking the first such activity since December 2023.
Moreover, there has been a noticeable uptick in the creation of new accumulation addresses for both Bitcoin and Ethereum over the past month. This growing trend signals a rising bullish sentiment among investors, despite the observed price stability in recent times. Analysis from Bitfinex draws upon data from CryptoQuant to corroborate these observations.
Digital Asset Products See Inflows
Last week, digital asset investment products recorded a substantial $185 million in inflows, marking the fourth consecutive week of positive investment trends. This surge contributed to a total of $2 billion in inflows for May alone, catapulting year-to-date inflows beyond the $15 billion milestone, reaching an unprecedented high.
Among these investment products, Bitcoin ETFs have emerged as standouts, accumulating a total of $58.5 billion in assets. Their success is attributed to the remarkable growth of Bitcoin, which has quadrupled in value since the beginning of last year.
Despite their profitability, critics voice concerns about the suitability of volatile digital assets for widespread adoption, even within the structured framework of ETFs.
The regulatory landscape surrounding cryptocurrencies poses challenges for investment vehicles in various countries, with restrictions or bans implemented in places like Singapore and China, affecting investor access.
However, the positive momentum for cryptocurrency ETFs isn’t limited to Bitcoin. Last week, the SEC signaled openness to Ether ETFs, the second-largest cryptocurrency by market value.
On May 23, the SEC officially approved 19b-4 applications from various issuers such as VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise, allowing them to issue spot Ether ETFs. Notably, some ETF issuers opted to remove staking from their final amendments.
According to analysis firm Kaiko, Grayscale’s upcoming spot Ethereum ETF could face substantial outflows, potentially averaging around $110 million per day.
