Since bitcoin prices have surged beyond $71,000, there have been significant inflows back into spot Bitcoin exchange-traded funds (ETFs) in the US. On Wednesday, Fidelity’s FBTC again dominated the market, with total inflows into Bitcoin ETFs approaching $500 million.
The Fidelity Bitcoin ETF (FBTC) is rising.
Although BlackRock has historically led inflows into spot Bitcoin ETFs, Fidelity’s FBTC has lately overtaken it. The Fidelity Bitcoin ETF (FBTC) saw $220 million in inflows on Wednesday, June 5, bringing its two-day total to around $600 million. As a result, the total value of FBTC assets under administration has increased to almost $9.5 billion.
Fidelity remains BlackRock’s direct rival regarding assets under management for its spot Bitcoin ETFs. Even with the present inflows, Fidelity FBTC is still half the size of BlackRock’s IBIT.
June 5 saw a significant net inflow of $488 million into Bitcoin spot ETFs, the 17th day with positive inflows. The day before, this figure stood at an astounding $887 million.
Grayscale’s ETF GBTC had a $14.58 million inflow in a single day on Wednesday. In comparison, Fidelity’s ETF FBTC saw $221 million, and BlackRock’s ETF IBIT drew $155 million. At this point, the total net inflow for Bitcoin spot ETFs is a staggering $15.338 billion. To put things in perspective, spot Bitcoin ETF purchases of BTC totalled 27 times the daily amount of Bitcoins generated.
NEW: 🇺🇸 Spot #Bitcoin ETFs bought 12,508 #BTC yesterday, while miners only produced 450 BTC. pic.twitter.com/O8t6QB9UbB
— Bitcoin Magazine (@BitcoinMagazine) June 5, 2024
Institutional Demand Will Increase
Regarding the increasing uptake of Bitcoin ETFs, Franklin Templeton’s CEO said, “This is the first wave of the early adopters.” The much larger institutions represent the next wave. Jenny Jhonson, the CEO, stressed that the current optimism still undervalues the possibility of a larger inflow of institutional investors into the Bitcoin ETF market.
Furthermore, the Franlink Bitcoin ETF’s AUM is quite modest compared to other major players, currently around $420 million.
