Capital Poured into US-listed Bitcoin Exchange-traded Funds This Week

This week saw inflows of fresh cash into Bitcoin exchange-traded funds (ETFs) listed on US markets, with Tuesday alone witnessing nearly $1 billion.

Capital gushed into U.S.-listed Bitcoin exchange-traded funds this week, with Tuesday alone seeing nearly $1 billion in fresh cash, Bloomberg data showed.

This propelled weekly inflows into the funds to $1.2 billion and drove up total assets under management (AUM) to $103 billion.

The cryptocurrency’s price rose above $93,000 on Tuesday, reaching highs of $93,700 — the highest since early March.

BlackRock’s iShares Bitcoin Trust (IBIT) remained the top dog among its rivals, with year-to-date inflows of $2.7 billion. The fund took in another $346 million last week alone.

Coming in a distant second and third were Ark Invest’s ARKB and Grayscale’s Bitcoin funds, with significantly smaller year-to-date inflows of $410.41 million and $385.31 million respectively.

However, Grayscale’s GBTC saw outflows of $1.18 billion since January, the only fund to see net outflows overall.

10 Of 11 Original BTC ETFs Saw Inflows As Price Hits 93K

This week, ten out of eleven spot Bitcoin ETFs saw inflows of fresh funds, according to Bloomberg senior ETF analyst Eric Balchunas.

He went on to say that the funds went “Pac-Man mode” yesterday, with nearly $936 million pouring into the ETFs.

This broad-based involvement suggests that institutional players are diversifying their bets into several funds rather than concentrating on one or two.

Value traded across all Bitcoin spot ETFs amounted to $496 million, while net assets in them now total nearly $57 billion—which is roughly 2.80% of Ethereum’s market cap.

But while Bitcoin-linked investments are flourishing, Ethereum products appear to be struggling.

CoinShares' reports indicate that investment products focused on Ethereum suffered outflows of another $26.7 million last week.

This continues an eight-week outflow streak for the altcoin, with year-to-degree inflows reaching $215 million—placing it second on the list.

The seven-day period also saw outflows from alternative cryptocurrencies, excluding XRP, amounting to $11 million.

However, on a year-to-date basis, these altcoins collectively saw inflows of $844 million.

The outflows from short Bitcoin products reached a seventh consecutive week, with $1.2 million exiting these funds.

CoinShares data reveals that these short bets have encountered losses of $36 million over seven weeks—a 40% reduction in their assets under management.

The sustained outflows from short positions align with Bitcoin’s recent strength in the market.

Among alternative coins, XRP stands out as the only one to see inflows into its investment products, attracting over $37 million last week—the third-highest for year-to-date inflows at $214 million.

This defies the trend observed in most of the other altcoins, which still face selling pressure.

Certainly, all of this new money being poured into Bitcoin ETF investments is perhaps the clearest sign yet that traditional financial institutions are coming around to cryptocurrency as an asset class.

We’re talking almost $1 billion coming into the market in just one day: this looks like the dawn of a new era in which acceptance of the asset class by the mainstream is even greater.