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US Spot Bitcoin ETFs Record Second-Best Day Ever as BTC Price Taps 2-Week High

CryptoPotato / 05.06.2024 / 08:27
US Spot Bitcoin ETFs Record Second-Best Day Ever as BTC Price Taps 2-Week High

On June 4, U.S. spot Bitcoin exchange-traded funds (ETFs) recorded a total inflow of $886.6 million.

This marks the highest net inflows seen by the funds since March 12, when a record of $1.04 billion was achieved. Notably, bitcoin reached an all-time high of $73,679 a day later, on March 13.

Fidelity Leads with $378M Inflows

According to data from Farside Investors, Fidelity’s FBTC ETF was in the lead, recording $378 million worth of inflows. BlackRock’s IBIT followed with $274 million in inflows, while the ARK 21Shares Bitcoin ETF (ARKB) was the third-best performer with $138.7 million.

Grayscale’s GBTC, known for its significant outflows, managed $28 million in inflows, marking just the seventh instance of positive flows since its conversion from a closed-end fund to a spot ETF in January.

GBTC has seen over $17.8 billion in net outflows, largely due to its high 1.5% management fees and narrowed discount, which caused many holders to exit. According to the Apollo Bitcoin Tracker, Grayscale’s Bitcoin fund initially held 620,000 BTC when the ETFs launched, but this has since fallen to 285,481 BTC, valued at $20.2 billion.

Meanwhile, spot Bitcoin ETFs from Invesco Galaxy, Franklin Templeton, WisdomTree, and Hashdex did not see any demand on June 4, with each of these issuers recording no flows.

Bitcoin Reclaims $70,000

As U.S. spot Bitcoin exchange-traded funds (ETFs) saw considerable demand, BTC surged past the $70,000 mark. According to CoinGecko data, as of the time of writing, Bitcoin is trading at just over $71,000, reflecting a 3.1% increase over the last 24 hours.

Bloomberg ETF analyst Eric Balchunas commented on the development, highlighting substantial activity from Fidelity. He emphasized the company’s proactive stance, noting that over the past four weeks, there has been a cumulative flow of $3.3 billion, bringing the year-to-date net to $15 billion. Balchunas further observed that the phenomenon initially described as the ‘third wave’ is now transitioning into a formidable tidal wave of momentum.

Fidelity not messing around, big-time flows all around today for The Ten, nearly $1b in total. Second best day ever, since Mid-March. $3.3b in past 4wks, net YTD at $15b (which was top end of our 12mo est). The ‘third wave’ is turning into tidal wave. https://t.co/S9yeSHaNbV

— Eric Balchunas (@EricBalchunas) June 5, 2024

Nate Geraci, President of the ETF Store, expressed his surprise at the nearly $900 million inflows, stating, “Five months after launch. I was told several months ago that all of the ‘degen retail’ investors who wanted to buy had already done so & there was nobody left. How can this be?”

The overall market for spot Bitcoin ETFs also recently achieved a milestone on May 24, with all ETFs collectively holding over one million BTC, most of which is allocated to U.S. products among the 32 available ETFs globally.

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