The notion that the rapid growth in assets for spot bitcoin ETFs is driven solely by “number go up” price action faced a challenge in June.
According to data from Bloomberg Intelligence, spot bitcoin ETFs saw net inflows of $790 million even as the price of bitcoin (BTC) fell by 7%. Leading the pack was BlackRock’s iShares Bitcoin Trust (IBIT), now the largest spot bitcoin ETF, which recorded over $1 billion in inflows. This surge offset the continued significant outflows from the high-fee Grayscale Bitcoin Trust (GBTC).
This trend contrasts sharply with April, when spot bitcoin ETFs experienced substantial outflows as bitcoin’s price dropped by 15%.
“Boomers are much better holders than some make them out to be,” wrote Bloomberg Intelligence senior ETF analyst Eric Balchunas, potentially referencing analyst James Bianco, who has consistently argued that the substantial asset accumulation in spot ETFs is driven by weak-handed, speculative investors.
June’s positive inflows could also be fueled by optimism surrounding the potential approval of a spot ether ETF, which regulators and prospective issuers have been actively working to launch. While a competing spot crypto ETF might divert funds from bitcoin ETFs, it could also signal broader regulatory acceptance of the cryptocurrency industry within the financial system.
Reports indicate that issuers of the ether ETF have been asked to resubmit a crucial filing by July 8, sparking hopes that these ETFs could be introduced to the market within the month.
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