Spot Bitcoin ETFs in the United States have seen impressive growth, accumulating over $17 billion in Year-to-Date (YTD) net flows as of July 19, 2024. This achievement is notable for a product that has only been on the market for about six months.
Significant Milestone Reached
Eric Balchunas, a Senior Bloomberg ETF Analyst, emphasized the importance of this milestone. He pointed out that reaching this level of net flows is significant because it represents genuine market demand and adoption, free from the influence of price appreciation. According to Balchunas, this figure “can only grow through net demand and adoption.”
🧙♂️Wizzap🪄🪄 #Bitcoin ETFs hit +$17B in YTD net flows, showing strong net demand and adoption with no fluff.
Bitcoin ETF Flow in total👇👇
📈IBIT: $18,968m
📈FBTC: $9,962m
📈BITB: $2,200m
📈ARKB: $2,608m
📈BTCO: $345m
📈EZBC: $394m
📈BRRR: $527m
📈HODL: $627m
📈BTCW: $72m… https://t.co/A6d4oM2qRx pic.twitter.com/RZjTi3NjVD
— ₿itzard 🧙♂️ (@wezard_wizard) July 20, 2024
Surge in Trading Volumes
Recently, the combined net flows for all nine spot Bitcoin ETFs in the US surpassed $16.1 billion. Trading volumes have also surged, with BlackRock’s IBIT leading with nearly $1.2 billion in trading volumes. Fidelity’s FBTC followed closely, recording over $410 million in daily trading volumes.
This YTD figure highlights the strong performance of various spot Bitcoin ETFs, including those from BlackRock, Fidelity, Grayscale, Franklin Templeton, VanEck, ARK 21Shares, and Bitwise. Over the past six months, BlackRock’s Bitcoin ETF (IBIT) has amassed over $18.5 billion in total Assets Under Management (AUM). This increase was driven by a significant $260 million inflow, adding 4,005 BTC from the open market in a single day.
Meanwhile, Fidelity’s FBTC is showing strong potential to surpass IBIT. On a recent Friday, FBTC saw $141 million in inflows, while IBIT recorded $116 million. Grayscale’s GBTC also experienced $20 million in inflows. Fidelity’s Bitcoin ETF is nearing a major milestone, with its AUM standing at $9.962 billion, just shy of $10 billion.
Role of Institutional Investors
Institutional investors have played a crucial role in driving the adoption of spot Bitcoin ETFs. Julian Fahrer, Co-Founder of Apollo Sats, noted that recent 13F filings indicate a significant increase in Bitcoin ETF positions among institutional investors. Specifically, 79% of institutions have increased their holdings, while only 12.5% have reduced their exposure.
With continued support from institutional investors, there are expectations that the total Bitcoin holdings of US Bitcoin ETFs will reach 1 million by the end of the month, having just crossed 900,000 this week.
