In a remarkable show of investor confidence, United States-based spot Bitcoin exchange-traded funds (ETFs) experienced their second-highest net inflow day ever, pulling in a combined $886.6 million. This surge, recorded on June 4, highlights a growing institutional interest in Bitcoin, particularly through regulated investment vehicles like ETFs.

Fidelity's Bitcoin Fund Leads the Charge

The Fidelity Wise Origin Bitcoin Fund (FBTC) topped the charts, attracting $378.7 million in net inflows. Following closely was BlackRock’s iShares Bitcoin Trust (IBIT), which saw $274.4 million. These figures, provided by Farside Investors, underscore the significant interest in these leading funds.

The ARK 21Shares Bitcoin ETF (ARKB) also performed notably well, securing $138.7 million in net inflows. This robust performance across multiple funds indicates a broad-based demand for Bitcoin exposure among institutional and retail investors alike.

A Record-Breaking Context

This latest inflow is the largest since March 12, when Bitcoin ETFs collectively drew in a record $1.04 billion, propelling Bitcoin to an all-time high of $73,679 the following day. The sustained interest in these financial products suggests that investors are increasingly viewing Bitcoin ETFs as a reliable and attractive means of gaining exposure to the cryptocurrency market.

Grayscale Bitcoin Trust's Revival

Interestingly, the Grayscale Bitcoin Trust (GBTC) also enjoyed a rare inflow day, with $28.2 million entering the fund. This marks only the seventh inflow day since it transitioned from a closed-end fund to a spot ETF in January. Despite having seen over $17.8 billion in net outflows, largely due to its high management fee of 1.5% and narrowed discount, the recent inflow suggests renewed interest among investors.

Initially holding 620,000 BTC at the launch of spot Bitcoin ETFs, GBTC's holdings have since decreased to 285,481 BTC, valued at approximately $20.2 billion, according to the Apollo Bitcoin Tracker.

Industry Reactions

ETF Store President Nate Geraci took to social media to challenge Bitcoin critics who had previously downplayed the demand for Bitcoin ETFs. “I was told several months ago that all of the ‘degen retail’ investors who wanted to buy had already done so and there was nobody left,” Geraci wrote. “How can this be?”

Bloomberg ETF analyst Eric Balchunas echoed this sentiment, noting the "big-time flows all around today for The Ten" — a reference to the Bitcoin ETFs, excluding Hashdex's, which has struggled to attract inflows since its later market entry.

Market Impact

This influx of capital comes amid a broader rally in Bitcoin prices, which rose 2.9% to $71,000 over the last 24 hours, according to CoinGecko. The inflows not only signify robust market confidence but also suggest that institutional adoption of Bitcoin is gaining momentum, potentially setting the stage for new all-time highs.

As regulatory clarity continues to improve and more financial advisors begin to embrace crypto assets, the Bitcoin ETF market is likely to see continued growth and investment, solidifying Bitcoin’s position in the mainstream financial ecosystem.