Key Points
- U.S. Bitcoin ETFs recorded their second-highest net inflow day with a total of $886.6 million.
- Fidelity Wise Origin Bitcoin Fund led the inflow followed by Blackrock’s Bitcoin ETF and ARK 21Shares Bitcoin ETF.
The exchange-traded funds (ETFs) for Bitcoin in the U.S. recently had a significant day, seeing the second-largest joint net inflow ever. Preliminary data shows a total inflow of $886.6 million.
Leading Performers
The Fidelity Wise Origin Bitcoin Fund (FBTC) was the leader of the pack, with a reported inflow of $378.7 million. Following closely behind was Blackrock’s Bitcoin ETF (IBIT) with an inflow of $274.4 million. The third most significant inflow was seen by ARK 21Shares Bitcoin ETF (ARKB), which brought in $138.7 million.
According to the data, the Grayscale Bitcoin Trust (GBTC) also experienced an unusual inflow day, netting $28.2 million. This is only the seventh such day for GBTC since it transitioned from being a closed-end fund to a spot ETF in January. Despite this, GBTC has experienced over $17.8 billion in net outflows, primarily due to its high management fee of 1.5%. This is considerably higher than the 0.25% fee of the BlackRock fund and even lower fees offered by competitors.
Overall Performance
Other Bitcoin ETFs, such as those from Invesco Galaxy, Franklin Templeton, WisdomTree, and Hashdex, did not see any demand, recording no flows for June 4. However, for the ten Bitcoin ETF issuers, June 4 marked the highest net inflow since March 12, when they recorded over $1.05 billion in total net inflows.
Nate Geraci, the president of ETF Store, addressed Bitcoin critics, questioning the claims that the Bitcoin ETFs would see minimal demand. He pointed out that despite claims that all interested retail investors had already bought in, the recent inflows suggest otherwise.
Meanwhile, Eric Balchunas, a Bloomberg ETF analyst, noted that there were “big-time flows all around today for The Ten” — referring to the Bitcoin ETFs excluding Hashdex’s.
Hashdex’s Bitcoin ETF (DEFI) has struggled to attract inflows since its market entry, which was later than the other issuers. However, on May 3, the U.S.-based spot Bitcoin ETFs marked 15 consecutive sessions of net inflows. This surge, along with a rally in Bitcoin’s price, helped BlackRock’s iShares Bitcoin Fund (IBIT) surpass $20 billion in assets under management for the first time.
According to Balchunas, the ETFs attracted approximately $2.4 billion in new money over the past month. This is the third-largest net inflow across the entire ETF market. After a few initial sell-offs, the ability to bounce back with renewed interest shows staying power.
Despite the initial excitement over the launch of spot ETFs, inflows slowed significantly in April and even turned negative for several days. Experts consider this fluctuation to be quite normal.
