US bitcoin spot ETFs saw a notable reversal this week, with a massive net inflow of $418 million on Tuesday. This comes after ETFs experienced 5 consecutive days of net outflows last week during bitcoin's drop below $60,000.
NEW: bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin ETFs yesterday recorded a net inflow of $418 million after five consecutive days of outflows last week.
We are back pic.twitter.com/qfobpZOT5b
– bitcoin Magazine (@BitcoinMagazine) March 27, 2024
The change signals renewed confidence among institutional investors, who have been enthusiastically betting on bitcoin ETFs since the first approval of US ETFs earlier this year. The SEC has approved eleven bitcoin spot ETFs after years of rejecting applications.
Fidelity's Wise Origin bitcoin Trust ETF (FBTC) led Tuesday's rise. It earned a staggering $279 million in admissions, the largest single-day gain since its release.
The influx stands in stark contrast to bearish sentiment last week, when more than $200 million flowed out of bitcoin ETFs as prices fluctuated amid a broader bitcoin price decline.
Now, with bitcoin stabilizing around $70,000, institutional interest is returning. While Grayscale's bitcoin Trust (GBTC) continued to bleed assets, BlackRock's iShares bitcoin ETF (IBIT) saw $162 million added on Tuesday. Total assets under management in bitcoin ETFs are almost $59 billion.
The sharp reversal in inflows underscores Wall Street's growing appetite for exposure to bitcoin through regulated investment vehicles. bitcoin ETFs are passing their first real test in a volatile market environment.
If the adoption trend persists despite market changes, bitcoin ETFs could solidify their status as bitcoin's preferred on-ramp to institutional dollars. Its growth and resilience reflect the growing widespread acceptance of bitcoin.
