4-Day Winning Streak: US Spot Bitcoin ETFs Rake in $136M

Crypto investment is witnessing a significant shift this week as US spot bitcoin exchange-traded funds (ETFs) continue to attract substantial capital.

For the fourth consecutive day, these innovative financial instruments have recorded more than $390 million in positive net inflows, according to the data from SoSoValue. 

On Tuesday, the collective inflows across the 12 US spot bitcoin ETFs reached an impressive $135.95 million. Leading the charge was BlackRock’s IBIT fund, which dominated Tuesday’s inflows with a substantial $98.89 million. 

The IBIT’s most significant single-day inflow since August 26, shows the fund’s growing popularity among investors. Following closely were Bitwise’s BITB and Fidelity’s FBTC, attracting $17.41 million and $16.80 million, respectively.

ETFs Bridge Crypto-Traditional Finance Gap

The introduction of spot bitcoin ETFs in January has revolutionized the cryptocurrency investment landscape. Since their launch, these funds have accumulated a staggering $17.83 billion in total net inflows. This remarkable figure shows the pent-up demand for regulated bitcoin investment vehicles and their potential to bridge the gap between traditional finance and the crypto market.

Tuesday’s trading activity saw the US bitcoin funds generate a total daily trade volume of $1.11 billion, reflecting the high level of interest and liquidity in these products. Notably, while eight funds, including Grayscale’s GBTC, reported zero flows, none of the ETFs experienced net outflows on that day, indicating a broadly positive sentiment across the sector.

The ethereum ETF market also showed signs of recovery, bouncing back from Monday’s setback with positive total daily flows of $62.51 million on Tuesday. This rebound was primarily driven by BlackRock’s ETHA, which attracted $59.25 million in net inflows.

Bitcoin’s Path to New Heights

Source: Bitcoin Liquid Index

As the ETF market continues to evolve, the broader crypto landscape is poised for potential growth. Digital asset research firm 10x Research has projected that Bitcoin (BTC) is on track to reach a new all-time high in the fourth quarter of this year. The firm suggests that a price movement above the $65,000 level could signal the resumption of the bull market, with Bitcoin potentially targeting the $70,000 mark.

At the time of writing, Bitcoin is trading at $63,539, representing a 2.32% increase in the last week and a 13.41% decrease from its all-time high of $73,750, according to the Brave New Coin’s Bitcoin Liquid Index. However, the cryptocurrency has shown impressive gains over the past year, rising  an astounding 144.43% since September 2023.

The recent surge in Bitcoin ETF inflows, coupled with optimistic price predictions, points to a shifting investment landscape where high-risk, high-reward assets are increasingly sought after.