Rise in Inflows to US Bitcoin ETFs Propels BTC Toward Record High

The United States spot Bitcoin exchange-traded funds (ETFs) have been experiencing a significant rise in inflows, pushing Bitcoin (BTC) closer to its all-time high. According to data from SoSoValue, these ETFs have attracted net inflows for 18 consecutive days, with a total of $15.56 billion flowing into the market since their launch on January 11. This surge in demand has brought the total assets under management (AUM) for these funds to $62.34 billion, making them some of the most successful ETF debuts in history.

Managed by financial giants such as BlackRock Inc. and Fidelity Investments, these ETFs have seen impressive inflows. BlackRock’s $21.4 billion iShares Bitcoin Trust (IBIT) fund received $350 million in inflows on June 6, while Grayscale Investments LLC’s $20.1 billion Bitcoin Trust (GBTC) experienced an outflow of $38 million. This has brought IBIT’s total net inflow to $17 billion, with Fidelity Wise Origin Bitcoin Fund (FBTC) accumulating around $10 million.

The growing investor interest in digital assets is evident through the ongoing inflows into Bitcoin ETFs. Ophelia Snyder, president of crypto ETF provider 21 Shares AG, noted that institutional and intermediary adoption of these funds is still in its early stages. She stated during Bloomberg’s Tiger Money podcast, “The market has quite a way to run and we’re still in quite early innings.”

Options traders are speculating that Bitcoin will surpass its previous peak of $73,798, set in March, due to the sustained ETF inflows and expectations of future Federal Reserve interest-rate cuts. Sean Farrell, head of digital-asset strategy at Fundstrat Global Advisors LLC, highlighted the positive macro trends favoring crypto, stating, “There have been massive inflows into spot-Bitcoin ETFs. Macro continues to trend in crypto’s favor, with economic growth slower at a non-recessionary pace and signs of disinflation continuing.”

In terms of Ethereum ETFs, the launch date depends on the diligence of issuers, according to SEC Chair Gary Gensler. The SEC approved spot Bitcoin ETFs in January, marking a significant shift in their stance on such products. Additionally, in May, the agency approved 19b-4 filings for Ethereum-linked spot ETFs, but the launch is pending approval of their S-1 registration.

Bitcoin has more than quadrupled in value since the start of last year, currently trading at around $71,200, up by more than 4% in the last seven days. On the other hand, Ether remains relatively unchanged in value around $3,800, showing signs of consolidation. The market continues to watch closely as the inflows into US Bitcoin ETFs propel BTC towards a record high.