US Spot Bitcoin ETF Products Records $17B In YTD Net Flows

For a product that hit the market about six months ago, spot Bitcoin ETF products are performing exceptionally well. As of July 19, Bitcoin ETFs hit over $17 billion in Year-to-date (YTD) net flows.

Spot Bitcoin ETFs Hit New Milestone

Eric Balchunas, a Senior Bloomberg ETF Analyst, noted that this is the first time that the offering is reaching this level. In his opinion, this figure is the most important number to look out for, seeing that it is “net the GBTC unlock and independent of price appreciation, basically no bs, can only grow through net demand and adoption. And it can go down but right now moving up.”

Bitcoin ETFs hit +$17b in YTD net flows for the first time yesterday. This is most imp number to watch, as it is net the GBTC unlock and independent of price appreciation, basically no bs, can only grow through net demand and adoption. And it can go down but right now moving up. https://t.co/VDUC6tVW5i

— Eric Balchunas (@EricBalchunas) July 20, 2024

As of four days ago, the net flows for all nine spot Bitcoin ETFs in the US crossed $16.1 billion. Their trading volumes at the time recorded significant surge. Blackrock’s IBIT led the pack recording nearly $1.2 billion in trading volumes. It was followed by Fidelity’s FBTC seeing over $410 million in daily trading volumes.

The recent YTD figure is a reflection of how the individual spot Bitcoin ETFs from BlackRock, Fidelity, Grayscale, Franklin Templeton, VanEck, ARK 21Shares and Bitwise are performing. In this six months, BlackRock Bitcoin ETF IBIT, has surpassed $18.5 billion in total Assets Under Management (AUM).

This was after the product witnessed a massive $260 million inflow, scooping a total of 4,005 BTC from the open market in one day recently.

However, Fidelity’s FBTC showed signs of overtaking IBIT on Friday as the BTC ETF market bounced back. FBTC saw a staggering $141 million in inflows while BlackRock’s IBIT saw $116 million in inflows. Also, Grayscale’s GBTC witnessed $20 million in inflows.

Currently, the Fidelity Bitcoin ETF is on the verge of hitting a major milestone of crossing more than $10 billion in net AUM. As of Friday’s closing, the total AUM of FBTC stood at $9.962 billion.

Institutional Investors Drive Adoption

Amidst all these, the contribution of institutional investors can not be overlooked. According to Julian Fahrer, Co-Founder of Apollo Sats, 13F filings show a marked increase in Bitcoin ETF positions among institutional investors. Precisely, 79% institutions have increased their holdings in these products. On the other hand, only 12.5% have decreased their BTC ETF exposure.

With their continued support and exposure, there are expectations that the total BTC holdings of US Bitcoin ETFs will reach 1 million by month-end. It only crossed 900,000 this week.

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