Bitcoin ETF Inflows Resume Amid Shift In Market Sentiment

The inflows into spot Bitcoin ETFs have finally turned out to be positive after two strong weeks of outflows of over $1.2 billion.

Bitcoin spot exchange-traded funds (ETFs) saw positive inflows on Monday, a departure from the outflows over the past two weeks that had reached over $1.2 billion.

The total inflows stood at $28.6 million, according to data from Farside Investors. Fidelity’s FBTC saw $28.6 million in inflows, while Bitwise’s BITB had $22.0 billion in inflows.

On the other hand, Grayscale’s GBTC saw $22.8 million in outflows, and BlackRock’s IBIT saw $9.1 million in outflows.

The inflows on Monday come as a welcome change after a period of outflows, which had led to some within the crypto industry suggesting that the BTC ETFs were losing out amid a shift in market sentiment for Bitcoin.

However, top industry figures have come out in support of the Bitcoin ETFs. Bloomberg analyst Eric Balchunas had stated that he remained bullish on the BTC ETFs, adding that the $1.2 billion outflows were small in comparison to the $46 billion AUM (assets under management) of the ETFs.

He stated that this was part of the game and that the outflows were not significant enough to be a major concern.

Earlier, Bianco Research’s Jim Bianco had opined that Bitcoin ETFs were losing out among investment wealth advisers and that their adoption was very “small,” downplaying the investment product.

However, Bitwise CIO Matt Hougan had countered this, stating that Bitcoin ETFs were seeing faster adoption rates among investment advisers than any other new ETFs in history.

Taking BlackRock’s IBIT as an example, Hougan stated that this ETF had attracted $1.45 billion in net flows from investment advisers. This made it the second fastest-growing ETF launched this year, excluding other Bitcoin ETFs.

Hougan went on to compare this to the KLMT ETF, which was seeded with $2 billion from a single investor but had seen minimal participation from investment advisers.

Thus, the Bitwise CIO highlighted that while investment managers may have constituted a smaller portion of overall Bitcoin ETF buyers, their adoption of these products had been unprecedented.

The surging Bitcoin price also seemed to be a major factor behind the inflows. At press time, the Bitcoin price had risen over 4.4%, trading at $57,107.12 with a market cap of $1.130 trillion.

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