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While five of the eleven approved Bitcoin ETFs saw positive inflows running into the millions, the remaining products experienced mixed results.
US-listed Bitcoin spot exchange-traded funds (ETFs) have seen a resurgence in positive inflows after experiencing a downturn earlier this week as bearish trends gripped the crypto market.
On August 7, crypto investment products recorded a total inflow of $98 million, marking the first significant recovery in days. This turnaround was driven by Bitcoin’s (BTC) rebound to the $60,000 level, after previously dropping to as low as $49,000.
The positive momentum continued through Thursday, with daily net inflows reaching over $193 million as investors sought to diversify their portfolios without directly owning the cryptocurrency.
A Strong Comeback for Bitcoin Spot ETFs
According to data from the crypto analytics firm SoSo Value, this substantial inflow following a period of market turbulence has brought the cumulative net inflow for Bitcoin spot ETFs to $17.43 billion as of August 8.
Leading the charge was BlackRock’s Bitcoin ETF, IBIT, which attracted over $157.60 million in inflows in a single day. The fund has been on an impressive streak since July, outperforming its peers. On July 31, the fund garnered $20.99 million in inflows following the launch of its Ethereum counterpart.
Despite the availability of alternative investments, investors have continued to favor Bitcoin over Ethereum. This preference led to IBIT securing $25.9 million in inflows on August 1, contributing more than half of the total $50.6 million inflow recorded that day.
These developments have even prompted BlackRock CEO, Larry Fink, to reconsider his stance on Bitcoin. Once a vocal critic, Fink now views Bitcoin as a hedge against inflation, stating that “there is a role for Bitcoin in portfolios,” and acknowledging that BTC “is one of the asset classes that we all look at”.
Previously, Fink had been one of Bitcoin’s harshest critics, famously referring to the cryptocurrency as an “index of money laundering” in 2017.
The Impact of SEC Approval
The shift in Fink’s perspective is largely attributed to the Securities and Exchange Commission’s (SEC) approval of Bitcoin ETFs, which has altered the broader financial industry’s outlook on the crypto market.
While BlackRock’s Bitcoin ETF led the inflow surge, other funds also posted notable gains on Thursday. SoSo Value’s data shows that Fidelity Investments’ FBTC reported a single-day inflow of $65.25 million.
Additionally, ARKB, managed jointly by Ark Invest and 21Shares, brought in approximately $33 million as of August 8. Meanwhile, VanEck’s Bitcoin ETF, HODL, accumulated around $3.38 million in inflows during the same period, bringing its total cumulative net inflow to $581.97 million as of Thursday.
WisdomTree Bitcoin Trust (BTCW) also experienced a positive inflow of $118.52 million, pushing its total cumulative net inflow to approximately $201.58 million.
Mixed Performance across Bitcoin ETFs
While five of the eleven approved Bitcoin ETFs saw positive inflows running into the millions, the remaining products experienced mixed results.
For instance, the Valkyrie Bitcoin Fund (BRRR), Invesco Galaxy Bitcoin ETF (BTCO), and Franklin Templeton Digital Holdings Trust (EZBC) remained dormant, with no significant buying or selling activity from investors.
In contrast, the Grayscale Bitcoin Trust (GBTC) and Hashdex Bitcoin ETF (DEFI) experienced outflows of $183 million and $2.03 million, respectively.
