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Bitcoin ETFs Reach $16 Billion AUM, Record Inflows Amid ATH Bitcoin Price Surge

Bitcoin ETFs hit $16 billion AUM milestone with massive inflows. Credits: EconoTimes

U.S. Bitcoin ETFs have reached a milestone of $16 billion in assets under management, driven by record inflows and Bitcoin's price hitting an all-time high of $65,000.

Bitcoin ETFs Achieve $16 Billion AUM

The total inflows into Bitcoin ETFs have remained strong, and the price of Bitcoin has surged to $65,000. Bitcoin exchange-traded funds (ETFs) in the United States saw inflows of more than $300 million for the second day running on Monday.

A positive aspect that may indicate less long-term volatility for Bitcoin is the fact that spot Bitcoin ETFs have recorded solid inflows for seven trading sessions in a row.

There were $300.9 million in net inflows into US Bitcoin ETFs on Tuesday, with no funds leaving any of the ETFs. Total inflows on Monday were $117.2 million split evenly between Ark Invests ARKB and BlackRock's IBIT.

According to Coingape, this marks the first time since its creation that the combined assets under management of all nine US-based spot Bitcoin ETFs have surpassed $16.1 billion.

CEO Larry Fink's Endorsement Boosts Inflows

When looking at the total AUM, BlackRock is clearly in first place. The recent CNBC interview in which BlackRock CEO Larry Fink enthusiastically recommended Bitcoin investing has not dampened these substantial inflows. To quote Fink:

“I’m a major believer that there is a role for Bitcoin in portfolios. I believe you’re going to see that as one of the asset classes that we all look at. I look at it as digital gold, as I said before”.

Trading volumes for Bitcoin exchange-traded funds (ETFs) increased dramatically on Monday. With approximately $1.2 billion in trading volumes, Blackrock's IBIT was the leader, while Fidelity's FBTC recorded over $410 million.

High Demand for Bitcoin ETFs from Investors

Bitcoin ETFs have been in high demand from both retail and institutional investors due to their regulated nature and the fact that they offer access to the asset class.

"Even just combining the 80 companies found manually in SEC filings accounts for 17% of the total ETF holdings," expressed Ky Young Ju, CEO of CryptoQuant. Many of them are featured, although not all of them qualify as institutional investors. It seems wrong to interpret ETF inflows as merely retail contributions.

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