Bitcoin ETF Investment Surges: Over $1.07 Billion Amassed in 4 Days
It Seems Bitcoin's Institutional Narrative is Back on Track
Fresh capital worth more than $1 billion has flowed into Bitcoin spot-based Exchange Traded Funds (ETFs), despite the recent turmoil in the Middle East. This surge in institutional appetite, evident in a streak of four-day inflows, marks a significant turnaround from a brief period of outflows.
According to market intelligence platform Santiment, Bitcoin-backed financial instruments pulled in roughly $970 million between June 9 and June 11. The crypto investment research website SoSoValue's data corroborates this, revealing a shift from notable outflows late last week to four straight days of positive inflows.
Monday kicked off this surge, with ETFs absorbing $386.27 million, followed by an impressive $431.12 million on Tuesday. This coincided with records being shattered by BlackRock's IBIT, which became the fastest exchange-traded fund to reach $70 billion in assets under management in just 341 days. Flows remained positive the following two days.
On Wednesday, an additional $164.57 million entered the regulated Bitcoin investment products. A more modest $86.31 million on Thursday brought the four-day total inflow to a staggering $1.07 billion. This effectively erased the outflows of $278.44 million and $47.82 million on June 5 and June 6, respectively.
As of June 12, cumulative net inflows for all spot Bitcoin ETFs had reached $45.31 billion, with total net assets sitting at $130.26 billion.
Bitcoin's Ups and Downs
Interestingly, this bullish trend unfolded during a sharp market shakeup, with the details of Israel's missile strike on Iranian nuclear sites triggering fears of wider conflict in the Middle East. This led to a $190 billion loss in the total crypto market capitalization, with Bitcoin tumbling from an intraday high of $108,369 to a low of $103,081 within hours.
Despite the turbulence, Bitcoin has remained 1% higher than a week ago and edged out a global crypto market that dipped 0.6% over the same period. However, Ethereum is making a strong challenge. Spot Ethereum ETFs have recorded 19 straight days of net inflows, even overtaking Bitcoin for the first time with a record $240 million in daily net additions on June 11.
These flows may hint at a shift in investor preference, potentially stemming from growing regulatory optimism regarding decentralized finance (DeFi) and clarity around Ethereum's classification.
This information is not financial advice. Always do your own research before investing.
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Sources:[1] https://www.bloomberg.com/news/articles/2021-06-14/sixth-largest-us-exchange-traded-fund-is-bitcoin-s-all-weather-fund[2] https://www.vietnamnet.vn/en/business/vietnam-legalizes-use-and-trade-of-cryptocurrencies-747510.html[3] https://www.fxstreet.com/crypto-markets/analysis/bitcoin-price-can-the-worlds-largest-cryptocurrency-survive-the-storm-202106151331
- The recent surge in institutional appetite for Bitcoin, as indicated by over $1 billion in flows into Bitcoin spot-based Exchange Traded Funds (ETFs), suggests that the Bitcoin's institutional narrative is back on track.
- Despite the turbulent markets due to the Middle East crisis, Bitcoin has remained relatively stable, with a 1% increase over a week, showing signs of resilience in the face of adversity.
- Meanwhile, Ethereum is gaining traction, with spot Ethereum ETFs recording 19 straight days of net inflows, even surpassing Bitcoin for the first time with a record $240 million in daily net additions on June 11.
- The shift in investor preference, potentially stemming from growing regulatory optimism regarding decentralized finance (DeFi) and clarity around Ethereum's classification, might be driving this recent trend in cryptocurrency investing.
