Bitcoin funds in the US experienced a surge in investor interest last week, amassing over $1 billion in assets – a feat rarely achieved in recent months. This marks the highest weekly inflow since early June, when the category collectively gained $1.8 billion.
According to Farside Investors, net inflows for the ten US spot Bitcoin funds they track have now reached $15.8 billion since their launch in January. Analysts believe this surge can be attributed to two key factors: a drop in price due to German government Bitcoin sales, and a shift in sentiment triggered by lower-than-expected US inflation data. This, as CoinShares research head James Butterfill noted in a recent report, prompted investors to “add to positions.”
Fidelity Investments’ Wise Origin Bitcoin Fund (FBTC) became the third fund to surpass the $10 billion mark in assets under management (AUM) last week. BlackRock’s iShares Bitcoin Trust (IBIT) remains the leader with $18.2 billion in AUM, followed by FBTC at $10 billion. The Grayscale Bitcoin Trust ETF (GBTC), which held nearly $30 billion before converting to an ETF and experiencing subsequent outflows, currently sits at $15.7 billion.
Within the past week (July 8th to 12th), FBTC witnessed the second-highest net inflow at $358 million, just behind IBIT’s $523 million. GBTC, on the other hand, saw a net outflow of approximately $35 million. Notably, Friday marked the sixth consecutive day of inflows into US spot Bitcoin funds – the first such streak since a 19-day run that ended in early June.
Fineqia International analyst Matteo Greco highlights in his research note that Bitcoin ETFs, with a combined AUM of roughly $51 billion, now hold approximately 4.5% of the total Bitcoin supply. Despite recent outflows from GBTC, Greco adds that trading volumes remain above average for July, reaching nearly $7 billion for the week.
This renewed interest in Bitcoin funds suggests a potential shift in investor sentiment. The coming weeks will be crucial in determining whether this is a short-term blip or a sign of a resurgent Bitcoin market.
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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