Bitcoin ETFs See Back-to-Back Inflows as Bitcoin Price Rebounds

TLDR

• U.S. Bitcoin ETFs experienced consecutive inflows for the first time in nearly a month.
• Bitcoin’s price recovery from $60,000 to $70,000 coincided with the ETF inflows.
• The cumulative assets under management in Bitcoin ETFs decreased by only 7% since October.
• The Grayscale Bitcoin Mini Trust ETF saw the highest single-day inflow of $131 million.
• BlackRock’s Bitcoin ETF faced the largest outflow of $20.854 million on Monday.

For the first time in nearly a month, U.S. Bitcoin exchange-traded funds (ETFs) recorded consecutive inflows, ending a streak of redemptions that had persisted since mid-January. On Friday, these funds saw a $471.1 million inflow, followed by an additional $144.9 million on Monday. This surge coincides with bitcoin’s recovery from a low of $60,000 to around $70,000, signaling a renewed investor confidence in the cryptocurrency.

Bitcoin ETFs See Resilient Asset Growth

The market’s latest shift came after Bitcoin peaked near $98,000 in mid-January, then declined to $60,000. This drop led investors to pull millions out of spot ETFs, which had rallied earlier in the month. Despite the volatility, the total assets under management (AUM) in these funds remain strong, underscoring continued faith in bitcoin’s long-term potential.

Data from Checkonchain shows that the cumulative AUM of 11 Bitcoin ETFs decreased only by 7% since October, moving from 1.37 million BTC to 1.29 million BTC. Bitcoin, however, has experienced a drop of more than 40% since its all-time high of over 126,000 BTC in October. These figures reflect an ongoing belief in the asset’s long-term value despite short-term price fluctuations.

Grayscale Bitcoin Mini Trust ETF Leads the Pack

The Grayscale Bitcoin Mini Trust ETF (BTC) recorded the largest single-day inflow on Monday, receiving $131 million. This brings its historical total net inflow to $2.071 billion. BTC’s performance highlights the demand for bitcoin-backed funds, even as the broader market experiences volatility.

Following BTC, the Ark Invest and 21Shares ETF (ARKB) saw a daily net inflow of $14.087 million. ARKB’s total net inflow has now surpassed $1.488 billion. Both funds have remained attractive to investors, reflecting confidence in the future of bitcoin ETFs despite recent market declines.

BlackRock ETF Records Outflows

In contrast, the BlackRock Bitcoin ETF (IBIT) faced the highest outflow on Monday, losing $20.854 million. Despite this, IBIT’s historical net inflow remains robust, with a total of $61.82 billion. The outflow from IBIT underscores the differing investor preferences across various Bitcoin ETFs, with some funds performing better than others in a fluctuating market.

As of now, the total net asset value (NAV) of U.S. Bitcoin spot ETFs stands at $90.053 billion. This represents 6.37% of Bitcoin’s total market cap. With a cumulative historical net inflow of $54.834 billion, the market for Bitcoin ETFs continues to show signs of resilience, even amid short-term price corrections.

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