The last four days have been quite good for spot Bitcoin ETFs’ 4th Straight Day with May 16 seeing a record high inflow of over $257.34 million. Major financial institutions reported massive Bitcoin stakes that exceeded certain predictions during the first quarter of the 13F reporting season on Wall Street, which contributed to this positive trend.
On Thursday, the largest inflow of $94 million was received by BlackRock’s iShares Bitcoin Trust (IBIT), making it the second-largest trust by net asset value. There were no positive inflow tendencies at IBIT throughout the past three weeks. Not far behind, with a gain of $67 million, was Fidelity’s Bitcoin ETF (FBTC). Net inflows of $62 million were also recorded by the Bitcoin ETFs’ 4th Straight Day of Ark Invest and 21Shares.
The Bitcoin Investment Trust (GBTC) run by Grayscale saw its first net inflow of $4.64 million on Thursday, following massive net withdrawals since its conversion in January, according to data released on Thursday. It appears that the new net flow is shifting in the trust’s favor.
Growing Institutional Interest in Bitcoin ETFs
The tendency toward improvement is not limited to the leading players. Investors put $18.5 million into Valkyrie’s Bitcoin ETF, while Bitwise, Galaxy Digital, Invesco, and Franklin Templeton all had single-digit inflows. The wide range of participants suggests that spot Bitcoin ETFs are attracting attention from all types of investors.
Impressive holdings in spot Bitcoin ETFs’ 4th Straight Day were revealed by major financial organizations such as Morgan Stanley and the State of Wisconsin Investment Board, surpassing original estimates. As of March 31, 2024, Morgan Stanley had over $270 million while Wisconsin had $163 million.
The news that global hedge fund Millennium Management had poured $1.94 billion into five different Bitcoin exchange-traded funds (ETFs) as of March 31st just added gasoline to the flames. Institutional investors’ increasing faith in the Bitcoin market is reflected in this substantial allocation. Among Millennium’s holdings, BlackRock’s Bitcoin ETF stands out, with Fidelity’s offering coming in a close second.
Mixed Views on Crypto ETFs
Some key players aren’t very interested, even though interest is on the rise. According to Salim Ramji, the new CEO of Vanguard, the firm’s stance reflects the market’s complicated and nuanced position on these assets, and the company remains opposed to issuing a spot Bitcoin ETF.
However, it is indisputable that the major institutional investors are becoming increasingly interested in it. Financial institutions like Bracebridge Capital and banking giants like JPMorgan have pledged their support to these exchange-traded funds.
Additionally, Galaxy Digital has lately witnessed a 40% increase in its net earnings, which could be attributable in part to the impact of these ETFs. This raises the possibility of a correlation with the current price shock of Bitcoin. As a result of these changes, Bitcoin may see substantial increases in the next months as more and more big players enter the arena.
