US Spot Bitcoin ETFs Soar with $17B Inflows in 2024 – What’s Driving the Surge?

The spot Bitcoin ETF products, introduced to the market approximately six months ago, are exhibiting excellent performance. As of July 19, the net flows of Bitcoin ETFs reached more than $17 billion Year-to-date (YTD).

Spot Bitcoin ETFs Hit New Milestone

Eric Balchunas, a Senior Bloomberg ETF Analyst, observed that this is the inaugural instance in which the offering has attained this magnitude. According to his perspective, this specific metric holds the utmost significance as it represents the net value after accounting for the GBTC unlock and is unaffected by price appreciation. It can only increase through net demand and adoption without any unnecessary complications. Currently, it is ascending, but it has the potential to descend.

Within the past four days, the total amount of money flowing into all nine spot Bitcoin exchange-traded funds (ETFs) in the United States exceeded $16.1 billion, causing their trade volumes to increase substantially. Blackrock's IBIT was the top performer, with trading volumes reaching around $1.2 billion. Fidelity's FBTC experienced daily trade volumes exceeding $410 million.

The current year-to-date (YTD) value represents the performance of individual spot Bitcoin exchange-traded funds (ETFs) offered by BlackRock, Fidelity, Grayscale, Franklin Templeton, VanEck, ARK 21Shares, and Bitwise. Over the past six months, the BlackRock Bitcoin ETF IBIT has accumulated a total of $18.5 billion in Assets Under Management (AUM).

Following a significant influx of $260 million, the product acquired 4,005 BTC from the open market in a single day.

Nevertheless, Fidelity's FBTC showed indications of surpassing IBIT on Friday as the BTC ETF market experienced a rebound. FBTC experienced an astonishing influx of $141 million, while BlackRock's IBIT experienced an influx of $116 million. Additionally, Grayscale's GBTC experienced a substantial $20 million increase in funds flowing into the investment.

The Fidelity Bitcoin ETF is poised to achieve a significant milestone by surpassing a net Asset Under Management (AUM) of over $10 billion. As of the closing on Friday, the assets under management (AUM) of FBTC amounted to $9.962 billion.

Institutional Investors Drive Adoption

The contribution of institutional investors cannot be disregarded amidst all these. Julian Fahrer, Co-Founder of Apollo Sats, states that 13F filings indicate a significant rise in Bitcoin ETF holdings by institutional investors. Specifically, 79% of institutions have augmented their holdings in these products. Conversely, only 12.5% have reduced their exposure to BTC ETFs.

Given the ongoing support and visibility, the collective Bitcoin holdings of US Bitcoin ETFs are anticipated to surpass 1 million by the end of the month. This week, they reached a total of 900,000.

TokenPost | [email protected]