Key Points
- US spot Bitcoin ETFs recorded a net inflow of $31 million on June 25th, 2024, breaking a week-long outflow trend.
- Fidelity’s FBTC and Bitwise’s BITB were leading contributors to the inflow, while Grayscale’s GBTC trust saw outflows.
On June 25th, 2024, US spot Bitcoin exchange-traded funds (ETFs) reversed a week-long outflow trend, drawing in a net inflow of $31 million. This data was provided by SoSoValue. This trend reversal raised questions about the short-term viability of these newly launched financial products.
Fidelity and Bitwise Lead the Inflow
Fidelity’s FBTC led the inflow with $49 million, indicating strong institutional interest in gaining Bitcoin exposure through a regulated vehicle. Bitwise’s BITB followed with $15 million, further confirming the presence of established players in the industry. VanEck’s HODL also contributed with $4 million in net inflows.
However, not all funds maintained a positive trend. Grayscale’s long-standing GBTC trust continued to see outflows, losing $30.3 million. Ark Invest and 21Shares’ ARKB also faced a net outflow of $6 million, suggesting a more cautious stance from some investors.
BlackRock’s IBIT, the largest spot Bitcoin ETF by net asset value, remained neutral on June 25. Despite a daily trading volume of $1.1 billion, the fund recorded zero net inflows. Similar inactivity was observed with offerings from Invesco, Galaxy Digital, Valkyrie, and Franklin Templeton.
Despite the mixed performance of spot Bitcoin ETFs, the overall outlook remains positive. As of June 25, the combined net inflows for these 11 funds since their January launch reached $14.42 billion, showing significant investor appetite for regulated Bitcoin exposure.
Spot Ether ETFs Gaining Momentum
As Bitcoin ETFs begin their journey, attention is quickly moving to spot ether ETFs. In May, the Securities and Exchange Commission (SEC) gave a cautious approval, prompting US issuers to hurry in finalizing their offerings. Last week, amended S-1 registration statements were filed. Industry experts expect a launch as soon as next week.
Matt Hougan, the Chief Information Officer at Bitwise, predicts a phenomenal reception for spot ether ETFs. He foresees a potential net inflow of $15 billion in the first 18 months after their US debut, indicating strong investor interest in Ethereum, the world’s second-largest cryptocurrency.
The recent inflow for Bitcoin ETFs has been modest but hints at a potential revival of investor confidence. The real challenge, however, might be the launch of spot ether ETFs. Analysts are forecasting significant growth, suggesting that the upcoming weeks could be crucial for the cryptocurrency ETF market in the US.
