Bitcoin ETFs Rebound with $28.6 Million Surge

After weeks of significant outflows, Bitcoin ETFs saw a strong $28.6 million inflow, sparking optimism. Bitwise CIO Matt Hougan highlighted a boom in

Bitcoin exchange-traded funds (ETFs) saw a strong $28.6 million inflow on Monday, offering a glimmer of hope after weeks of outflows.

According to data from Farside Investors, $22.0 billion of the inflows went into Bitwise's BITB and $28.6 million into Fidelity's FBTC. However, Grayscale's GBTC saw outflows of $22.8 million and BlackRock's IBIT saw outflows of $9.1 million.

The inflows come as some in the cryptocurrency industry have expressed concerns that BTC ETFs are losing steam, especially given the large outflows over the past two weeks.

But analysts are defending Bitcoin ETFs despite the market concerns.

Bloomberg analyst Eric Balchunas said the $1.2 billion in outflows are small compared to the $46 billion AUM of the ETFs, and he still has a positive view on the BTC ETFs.

“The outflows are tiny relative to the AUM. Continue to maintain a positive view on the虧Bitcoin ETF,” he said.

He added that the outflows are to be expected and are not a cause for major concern.

It's also worth noting that the ETFs have seen a total of $16.92 billion in net inflows since their launch in January, despite the outflows.

Meanwhile, Bianco Research's Jim Bianco said last week that investment wealth advisers are not buying into Bitcoin ETFs and their adoption is still “small,” which makes the product less valuable.

But Bitwise CIO Matt Hougan refuted the claim, saying that investment advisers are using Bitcoin ETFs at a rate that has never been seen before.

Hougan said that BlackRock's IBIT ETF has received $1.45 billion in net flows from investment advisers. When excluding all Bitcoin ETFs, the IBIT had the second-highest growth rate among ETFs that were launched this year.

Hougan also highlighted the KLMT ETF, which received a $2 billion seed from a single investor but has not received any flows from investment advisers.

“Advisers may be a small percentage of total Bitcoin ETF buyers, but their usage of the product is like nothing we've ever seen before,” the Bitwise CIO added.