Breaking News: US Bitcoin ETFs Experience Historic $1B+ Inflows for Two Consecutive Days
Overview
In a groundbreaking development since their launch in January 2024, US-based spot Bitcoin exchange-traded funds (ETFs) have marked a significant milestone by receiving over $1 billion in inflows for two consecutive days. This surge in investor interest has raised eyebrows and sparked discussions within the crypto and blockchain community.
The data from Farside reveals that on Friday, 11 spot Bitcoin ETF products collectively saw inflows amounting to $1.03 billion, following a remarkable $1.17 billion the day before. Of these staggering numbers, BlackRock’s IBIT stood out as the frontrunner, attracting a whopping $953 million on Friday alone. This surge in investments has undoubtedly caught the attention of both seasoned analysts and crypto enthusiasts alike.
Nate Geraci, president of NovaDius Wealth Management, highlighted in an X post that since the inception of these ETFs, only seven days have seen inflows surpassing $1 billion. Remarkably, two of those days happened consecutively in the recent past, with the previous record standing at $1.07 billion on January 17, 2024. The remarkable $1.17 billion inflow on Thursday was the second-highest daily figure ever, trailing only the $1.37 billion influx on November 7, 2024, the day of Donald Trump’s US presidential election victory.
Matt Hougan, Chief Investment Officer at Bitwise Invest, pointed out a fascinating observation that while the Bitcoin network produced approximately 450 BTC on Thursday, spot Bitcoin ETFs purchased about 10,000 BTC. This surge in demand was further corroborated by Jan3, a blockchain analytics firm, which noted that on Wednesday, Bitcoin ETF demand exceeded the daily mined supply by a staggering 22 times.
However, amidst this frenzy of activity, industry experts like Jan3 CEO Samson Mow have cautioned that such unprecedented demand may not be sustainable at the current price levels. The recent surge contributed to a total of $2.72 billion in inflows over the past five trading days, propelling Bitcoin‘s price to new all-time highs, peaking at $118,780 on Friday, following a climb to $112,000 on Wednesday.
The price rally has been a significant boon for BlackRock’s spot Bitcoin ETF (IBIT), which saw its assets under management (AUM) soar to over $80 billion on Thursday. ETF analyst Eric Balchunas hailed IBIT as the “fastest ETF” to reach this milestone, achieving it in just 374 days. Notably, BlackRock reported earning more revenue from IBIT than from its flagship iShares Core S&P 500 ETF, underscoring the growing influence of Bitcoin-related investments.
As the total assets across all spot Bitcoin ETFs crossed $140 billion for the first time, these recent developments paint a compelling picture of the evolving landscape in the crypto market. While the influx of investments and soaring prices demonstrate growing mainstream acceptance of cryptocurrencies, the sustainability of such trends remains a pertinent question for industry experts and investors alike.
