Spot Bitcoin ETFs in the U.S. Attract $302 Million Inflows, Fidelity's FBTC Tops the Chart

Spot Bitcoin exchange-traded funds (ETFs) in the United States witnessed a surge in investor interest on Wednesday, marking the largest daily net inflow since May 3. According to SoSoValue data, total inflows amounted to an impressive $302.97 million, with Fidelity's FBTC emerging as the frontrunner with $131 million worth of daily inflows. Bitwise's fund followed closely behind with $86 million in inflows, while Ark Invest and 21Shares' ARKB attracted $39 million.

Other Bitcoin ETFs, including those managed by Valkyrie, VanEck, Franklin Templeton, WisdomTree, and a collaboration between Invesco and Galaxy Digital, also reported notable single-digit net inflows. However, Grayscale's GBTC, the largest spot Bitcoin fund by net asset value, saw its third-ever net inflows totaling $27 million. Surprisingly, BlackRock, the second-largest fund, recorded zero flows.

Rachael Lucas, a crypto analyst at BTC Markets, highlighted the significance of these inflows, indicating that investment advisors and hedge fund managers view Bitcoin ETFs as a unique hedge offering diversification benefits not found in traditional asset classes. Despite recent market fluctuations, the cumulative net inflow of $12 billion since their launch in January underscores the sustained appeal of these financial instruments.

As of Wednesday, the 11 spot Bitcoin ETFs in the U.S. have collectively attracted $12.15 billion in cumulative net inflows. However, trading volume on these ETFs has shown a steady decline since reaching its peak in March, as reported by The Block's Data Dashboard.

In tandem with the influx of investment into Bitcoin ETFs, the price of Bitcoin surged by 6.65% in the past 24 hours, reaching $66,081 at the time of publication, according to The Block’s price data.

Furthermore, New York-based hedge fund Millennium Management disclosed its substantial holdings in five spot Bitcoin ETFs, totaling $1.94 billion as of March 31. Notably, the largest allocation was in BlackRock's IBIT, amounting to approximately $844 million. This revelation further underscores the growing institutional interest in Bitcoin as a viable investment asset.