Bitcoin firms made significant moves last week, acquiring $1.2 billion worth of the cryptocurrency, yet Bitcoin ETFs have truly stolen the spotlight. This surge highlights the growing institutional interest in Bitcoin, further solidifying its position in the financial landscape.
Digital asset investment products have recorded their tenth straight week of inflows, bringing in $1.24 billion last week, according to data from CoinShares. This continued streak has pushed year-to-date (YTD) inflows to $15.1 billion, a new record for this year.
US-based spot Bitcoin ETFs are experiencing a dramatic uptick in investor activity. Twelve funds saw cumulative inflows of $1.2 billion, marking the second strongest daily performance since their launch in 2024 and the best this year. Since mid-April, these funds have attracted more than $15 billion in fresh capital, signaling strong institutional demand.
BlackRock's iShares Bitcoin Trust (IBIT) is leading the charge, with substantial weekly inflows that have significantly increased its assets under management. IBIT took in $1.23 billion in weekly inflows, bringing the total assets under its management to more than $74 billion. BlackRock's IBIT led the day with $448.5 million in inflows and over $5 billion in trading volume, twice its usual daily average. IBIT is now just shy of $80 billion in assets under management and holds over 700,000 Bitcoin, a record high. For context, it took SPDR Gold Shares (GLD), the largest gold ETF, more than 15 years to reach a similar level.
Other Bitcoin ETF issuers, like Fidelity's FBTC and Ark 21Shares' ARKB, have also reported strong performances, further demonstrating broad-based interest in these investment vehicles. Fidelity's FBTC also recorded strong performance on the day, with $324.34 million in inflows, while Ark 21Shares' ARKB pulled in $268.7 million in fresh capital.
The rise in Bitcoin ETF activity is a clear indicator of growing institutional confidence, spurred by the broader market rally. Bloomberg's ETF analyst, Eric Balchunas, noted that attracting new investors requires convincing them to buy, emphasizing that net flows represent "net sales" for these ETFs. He also predicts that Bitcoin ETFs could surpass gold funds in assets within the next 3 to 5 years.
Interestingly, despite the overall positive sentiment, Grayscale's GBTC has experienced outflows since January, contrasting with the prevailing trend. Short Bitcoin products are also feeling the pressure, with ongoing outflows suggesting a decline in bearish sentiment as Bitcoin's price shows strength.
Ethereum is also experiencing a surge, extending its inflow streak. Spot Ethereum ETFs have played a significant role in this inflow streak, with the nine products logging inflows on 25 of the past 30 trading days, totaling nearly $1.5 billion. Market observers have linked ETH's inflow rise to several key factors, including the recent Pectra upgrade and increasing institutional interest in the crypto.
