TL;DR
- The Bitcoin ETF market records two consecutive days of positive inflows totaling $217 million, sparking optimism among investors after weeks of stagnation.
- GBTC, IBIT, and Fidelity lead the investment wave, with inflows of $3.9 million, $21.5 million, and $99.2 million respectively.
- Other providers such as Bitwise, ARK, Invesco, Franklin, and VanEck also experience positive flows, indicating a recovery in investor sentiment towards ETFs.
The Bitcoin ETF market is back in the spotlight. After two consecutive days of positive capital inflows, it seems to have reignited optimism among investors. In total, inflows amounting to $217 million have been recorded, a significant turnaround after weeks of stagnation since mid-March.
The new wave of investment has been led by Grayscale Bitcoin Trust (GBTC), BlackRock’s IBIT, and Fidelity. GBTC, a pioneer in crypto investment products, has attracted $3.9 million, while IBIT has seen an increase of $21.5 million, and Fidelity has led the pack with an inflow of $99.2 million.
Yesterday's ETF inflows by @FarsideUK
We had $217 million of inflows and all were positive.
Fidelity had $99 million, Ark $75 million and $GBTC $3.9 million.
Blackrock did $21.5 million.
Price in range of $63k-$65K.
As long as inflows stays positive here the supply is… pic.twitter.com/iKUNFCLLhK
— WhalePanda (@WhalePanda) May 7, 2024
However, it’s not just these giants witnessing increased investor interest. Other ETF providers such as Bitwise, ARK, Invesco, Franklin, and VanEck have also seen positive flows, albeit to a lesser extent. Bitwise added $2.1 million, ARK impressed with $75.6 million, Invesco secured $11.1 million, while both Franklin and VanEck recorded $1.8 million each. This widespread increase signals a recovery in investor sentiment towards BTC ETFs.
Bitcoin Struggles to Recover Amid High Volatility
Bloomberg ETF specialist Eric Balchunas commented on this trend, noting the rarity of uniformly positive flows and investors’ resilience to market volatility. On the other hand, Adam Blumberg, co-founder of Interaxis, praised ETF investors’ mature behavior, emphasizing their long-term approach and resistance to market fluctuations.
Recently, Hightower, an asset manager with a value of $130 billion, has purchased $68 million in Bitcoin ETFs, including products from Grayscale, Fidelity, BlackRock, ARK, Bitwise, and Franklin Templeton. The diversity of the portfolio shows considerable support for Bitcoin from traditional financial institutions. As for its price, at the time of writing, the price of BTC stands at $64,053, with a decrease of just 0.3% in the last 24 hours.
It seems there is a positive shift in market sentiment towards BTC and ETFs. It is likely that the position of the leading cryptocurrency will further strengthen as a legitimate and stable asset class in the global financial market.
