Bitcoin Exchange-Traded Fund (ETF) trading has broken records since receiving approval from the SEC. Despite concerns over a recent drop and withdrawals, interest in Bitcoin ETFs has remained strong, with three consecutive days of net inflows.

According to data from SoSoValue, Bitcoin spot ETFs saw a combined net inflow of $213 million yesterday, marking the third consecutive day of positive investment. This surge follows a previous decline that had some investors questioning the demand for Bitcoin ETFs. The increase in inflows just before the halving suggests that investors may be increasing their Bitcoin holdings ahead of the anticipated code update.

In contrast, the Grayscale ETF (GBTC) experienced a net outflow of $79.3 million in a single day, bringing its total net outflow to $15.31 billion. Meanwhile, BlackRock's Bitcoin spot ETF saw the largest net inflow on a single day, totaling over $144 million, contributing to a total net inflow of $14.4 billion over the past 15 years.

BlackRock's active trading activity coincides with its recent inclusion of top Wall Street institutions as Authorized Participants (APs) in the Bitcoin spot ETF prospectus. Major financial players such as Goldman Sachs, Citigroup, Citadel, and UBS, alongside JPMorgan and Jane Street, are now designated as APs to BlackRock, further solidifying institutional involvement in the Bitcoin market.

Despite growing institutional interest, the futures market indicates potential volatility ahead. CryptoQuant data suggests increased Bitcoin purchases by US institutions when the Coinbase Premium rises. This premium, reflecting the price difference between Coinbase and foreign exchanges, signals strong institutional engagement, particularly amid recent inflows into US BTC ETFs.

In conclusion, Bitcoin ETFs have seen three consecutive days of net inflows despite previous concerns, indicating sustained investor interest in the cryptocurrency market. With major financial institutions joining as Authorized Participants, institutional involvement in Bitcoin continues to grow, although potential volatility remains a factor to watch.