The American Bitcoin market is experiencing a resurgence of investor interest, with nearly $1.1 billion flowing into US spot Bitcoin ETFs over the past week, according to Farside Investors data. This marks a significant turnaround after four consecutive weeks of outflows and represents the third straight week of positive inflows for these funds.
This surge coincides with a key regulatory development: the US Securities and Exchange Commission’s (SEC) approval of 19b-4 proposals for a range of spot Ether ETFs. While the spotlight was on Ether, Bitcoin funds also saw a significant boost. Last week’s inflows were the highest since mid-March, narrowly surpassing the previous week’s total.
BlackRock’s iShares Bitcoin Trust (IBIT) led the charge, attracting a whopping $720 million in net inflows. This puts IBIT on track to potentially dethrone the current category leader, Grayscale Bitcoin Trust ETF (GBTC), which holds roughly $20 billion in assets compared to IBIT’s current $19.6 billion.
Grayscale, which converted to an ETF in January, has witnessed over $17.6 billion in net inflows but has seen a slowdown recently. David LaValle, Grayscale’s Head of ETFs, anticipated this initial outflow due to the diverse investor base in GBTC. He explained that institutional traders who held positions when the product traded at a discount saw the conversion as an opportunity to unwind those positions.
Also Read: Bitcoin for Everyone: The Simple Way to Buy Bitcoin ETFs
Looking ahead, Grayscale is exploring a cheaper version of GBTC. Additionally, analysts like James Butterfill, Head of Research at CoinShares, suggest that the recent inflows might be partly driven by investors perceiving the Federal Open Market Committee’s minutes and recent economic data as mildly dovish.
While Bitcoin basked in the spotlight, Ether-related products in other countries also saw a modest $36 million inflow during the week of the Ether ETF approvals. Overall, 2024 is shaping up to be a banner year for digital asset investment, with year-to-date net inflows reaching a record-breaking $14.9 billion, according to CoinShares data.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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