BitcoinWhat is the reason behind the surge in inflows?

What is the reason behind the surge in inflows?

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Spot bitcoin ETFs in the US have seen a significant increase in net inflows, reaching almost $66 million in just one day. This surge has contributed to a total net inflow of $11.75 billion since these products were listed.

Leading the way is Fidelity’s Wise Origin Bitcoin Fund, which attracted an impressive $39 million in net inflows in a single day, according to data from SoSo Value. Bitwise Bitcoin ETF (BITB) and VanEck Bitcoin Trust ETF (HODL) also played a part in this influx, with $20 million and $7 million respectively.

However, it wasn’t all positive news for ETFs. Despite Grayscale’s converted Bitcoin Trust (GBTC) having a cumulative net outflow of around $18 billion, it did not see any significant net flows during this period.

Although yesterday’s surge marked the highest volume for spot bitcoin ETFs since the start of the month, the overall trend remains downward.

In Hong Kong, the situation for bitcoin ETFs was different, with net outflows reported on 535 BTC. This caused the region’s aggregated bitcoins under management to fall below its seed BUM, according to K33 Research senior analyst Vetle Lunde.

The latest figures also showed a positive shift in BTC ETF net inflow on May 13, 2024, following two consecutive days of negativity. While none of the ETFs experienced outflows, several, including Grayscale and BlackRock, recorded zero flows.

However, data from the past 30 trading days presents a more nuanced picture, revealing a net outflow of $297 million across the 10 Bitcoin ETFs, with outflows observed on 17 of those days.

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