Surge in Bitcoin ETF Inflows
US spot Bitcoin exchange-traded funds (ETFs) are witnessing a surge in investor confidence, buckling the trend of recent weeks. On Wednesday, these funds recorded a net inflow of $488.24 million, marking the 17th consecutive day of positive net flows, according to data from SoSoValue.
This streak equals the previous record set in January and February earlier this year. All 11 spot Bitcoin ETFs registered positive or zero net inflows on Wednesday. Fidelity’s FBTC led the other ETFs, attracting $221 million, followed closely by Blackrock’s iShares Bitcoin Trust (IBIT) with $155 million.
This trend indicates a growing investor preference for regulated exposure to Bitcoin through ETFs. Also, Ark Invest and 21Shares’ ARKB recorded inflows of $71 million, while Bitwise’s BITB secured $19 million. Even Grayscale Bitcoin Trust (GBTC), functioning more as a trust than an ETF, witnessed $15 million in net inflows, marking its second consecutive day of inflows.
Bitcoin Eyes New All-Time High
Meanwhile, the recent surge in Bitcoin price, reaching $71,767 on Bitstamp, is closely linked to these increased inflows into spot Bitcoin ETFs. Analysts observe a strong correlation between the positive inflows and the bullish trend in Bitcoin’s price.
Outflows have been rare since the significant outflow from US spot Bitcoin ETFs on May 10, 2024. Only ARK Invest’s ARKB noted an outflow of $100 million on May 30.
Nevertheless, the overall trend remains positive, with 17 consecutive days of net inflows matching the record from February.
Following the recent rally, BTC’s price is close to its all-time high of $73,750, set on March 14, 2024. The current price hovers around $70,980, 3.8% shy of this peak. Unsurprisingly, the cryptocurrency community is confident that the leading digital asset will soon set a new peak price.
This bullish momentum also extended to the broader crypto market as the market cap soared to 2.79 trillion after Ethereum and other altcoins recorded notable price increments.
Coinbase Sees $500 Million Bitcoin Outflows
Meanwhile, Coinbase, one of the world’s largest cryptocurrency exchanges, has recorded BTC outflows amounting to nearly $500 million over the past 48 hours. This development coincides with a surge in activity and dominance of spot Bitcoin exchange-traded funds (ETFs) in the US market.
According to CryptoQuant data, Coinbase noted more than 6,600 BTC outflows on June 4, totaling approximately $500 million based on BTC’s trading price. Yet, the Coinbase Premium Index, which tracks the price difference between Coinbase and other exchanges, maintains a positive value on hourly and daily scales. This indicates robust demand for the spot BTC ETF market, fueling the current market upswing.