Eric Balchunas highlights the $17B net flows in US Spot Bitcoin ETFs as a key indicator of genuine demand and adoption, independent of price appreciation.
Eric Balchunas, a Senior Bloomberg ETF Analyst, observed that this is the inaugural instance of the offering reaching this level.
He believes that this figure is the most critical to monitor, as it is “net the GBTC unlock and independent of price appreciation, basically no BS, can only grow through net demand and adoption.” Additionally, it has the potential to decrease; however, it is currently increasing.
The net flows for all nine spot Bitcoin ETFs in the United States exceeded $16.1 billion as of four days ago. At that time, their trading volumes experienced a substantial increase.
Blackrock’s IBIT was the most active, with roughly $1.2 billion trading volumes. This was succeeded by Fidelity’s FBTC, which experienced daily trading volumes exceeding $410 million.
The most recent year-to-date figure is indicative of the performance of the individual spot Bitcoin ETFs from BlackRock, Fidelity, Grayscale, Franklin Templeton, VanEck, ARK 21Shares, and Bitwise.
In the past six months, the total Assets Under Management (AUM) of the BlackRock Bitcoin ETF IBIT have surpassed $18.5 billion.
This occurred subsequent to the product’s recent $260 million inflow, which resulted in the acquisition of 4,005 BTC from the open market in a single day.
Nevertheless, the BTC ETF market rebounded on Friday, and Fidelity’s FBTC appeared to surpass IBIT. FBTC experienced an extraordinary $141 million in inflows, while BlackRock‘s IBIT experienced $116 million in inflows. Additionally, Grayscale’s GBTC experienced $20 million in inflows.
At present, the Fidelity Bitcoin ETF is on the brink of surpassing $10 billion in net AUM, a significant milestone. The total AUM of FBTC was $9.962 billion as of Friday’s closing.
Institutional investors’ contributions are indispensable amid these circumstances. Julian Fahrer, the Co-Founder of Apollo Sats, has reported that institutional investors have increased their positions in Bitcoin ETFs as evidenced by 13F filings. Specifically, 79% of institutions have increased their investments in these products. Conversely, only 12.5% have reduced their exposure to the Bitcoin ETF.
The total BTC holdings of US Bitcoin ETFs are anticipated to reach 1 million by the end of the month due to their ongoing support and exposure. This week, it only exceeded 900,000.
