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Spot Bitcoin ETF flows rise, reaching the 2nd daily high
Spot Bitcoin ETF flows rise, reaching the 2nd daily high
Net flows into Bitcoin spot exchange-traded funds reached $880 million on Tuesday, the second-highest daily level in their five-month history, as momentum accelerates for 11 fledgling products.
THE Fidelity Wise Origin Bitcoin Fund (FBTC) led Tuesday’s surge with nearly $379 million in inflows, followed by BlackRock’s iShares Bitcoin Trust (IBIT).that’s $274.4 million ARK 21Shares Bitcoin ETF (ARKB)According to data from British asset manager Farside Investors, inflows amounted to $139 million.
“Loyalty is no joke,” Eric Balchunas, senior ETF analyst at Bloomberg tweeted. “Second best day ever.”
Commodities have generated about $3.3 billion in inflows over the past month, resuming their torrid pace after a slowdown in early spring. They reached nearly $15 billion in total flows amid growing appetite for cryptocurrency-focused investments and despite recent angst over so-called risk assets.
Total assets under management by the funds are close to $55 billion. Ten funds debuted on Jan. 11, a day after the Securities and Exchange Commission approved them to begin trading.
Bitcoin rose above $71,000 on Wednesday, its highest level since early April. The largest digital asset by market capitalization rose 1.5% in the past 24 hours and gained more than 6% in the past seven days. Meanwhile, the SEC’s approval of a rule change that would list Ethereum spot ETFs has increased the likelihood that such products will begin trading in the near future, pushing up the price of Ether, the second-largest cryptocurrency by market value. , at levels not seen since the beginning of 2022. .
GBTC generates inflows
Tuesday, also the Grayscale Bitcoin Trust (GBTC) finished in positive territory, one of the few times it has done so since converting from a trust with inflows of $28 million. IBIT and GBTC control the most assets among spot bitcoin ETFs.
In a note to etf.com, Mark Connors, managing director and head of global macro strategy at Onramp, a Dallas-based financial services firm focused on bitcoin, attributed the recent increase to growing judicial and now legislative support for bitcoin. “Industry adoption is entering a ‘terra incognita.’”
In a Telegram exchange with etf.com, Noelle Acheson, the author of the Crypto is Macro Now newsletter, called “the macro setup for BTC (bitcoin)…strong,” with declining yields and rate cut expectations increasing. “Both are strong indicators of liquidity: BTC continues to be one of the most sensitive assets to macro liquidity.”
The story continues
He added that “we’re probably seeing the result of some of the big investment platforms finally having their systems ready for client onboarding.”
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