Bitcoin ETF Inflows Slow Despite $100K Milestone
Bitcoin recently surged past the $100,000 mark, boosting optimism in the crypto market and driving renewed inflows into Bitcoin exchange-traded funds (ETFs). However, the pace of these inflows is noticeably slowing, prompting questions about the future of institutional investment in Bitcoin ETFs.
Contrasting ETF Inflows
U.S.-listed Bitcoin ETFs, which experienced outflows amid recent tariff uncertainty, have seen a rebound, attracting significant institutional capital. Over two days (May 7th and 8th), these ETFs saw a combined $260 million in inflows. While this reflects renewed investor confidence, the rate is considerably slower than previous recoveries. Earlier, when Bitcoin was below $100,000, inflows surged to as high as $917 million in response to tariff-related rebounds. Recent data shows more modest figures: $142.3 million and $117.4 million on May 7th and 8th, respectively.
Fidelity's Rise, BlackRock's Slowdown
The changing dynamics between major players like BlackRock and Fidelity are noteworthy. BlackRock's iShares Bitcoin Trust (IBIT), previously a dominant force, has seen its daily inflows significantly decrease, moving from a massive $643.2 million on April 23rd to a range of $30–70 million recently. This slowdown might reflect a strategic recalibration or the end of BlackRock's initial accumulation phase. Conversely, Fidelity's Wise Origin Bitcoin Fund (FBTC) has shown increased strength, accumulating over $75 million in inflows in just two days, potentially reclaiming market share.
Ethereum and Solana ETF Activity
While Bitcoin ETFs remain attractive, the situation for Ethereum (ETH) funds differs. On May 8th, Ether ETFs saw $16.1 million in outflows, primarily from BlackRock's ETHA. Interestingly, Fidelity is expanding its footprint in the crypto ETF space, with its spot Solana (SOL) ETF filing gaining SEC recognition. This diversification suggests Fidelity is strategically positioning itself for growth in the evolving crypto ETF market.
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