Last week witnessed a continuous surge for Bitcoin ETFs, pulling in a significant $1.8 billion.
Jump on Board: Bitcoin ETF Mania Takes Center Stage
U.S.-based Bitcoin Exchange Traded Funds (ETFs) are experiencing a surge, drawing over $1.8 billion in inflows last week, according to data from CoinGlass. The rally commenced on April 17, with Thursday and Friday being standout days, bringing in a staggering $1.1 billion and $675 million, respectively.
Friday's amount marked the seventh-highest total of the year, and as per CoinShares, Bitcoin ETF inflows outpaced Ethereum ETF inflows by more than 10:1. BlackRock's iShares ETF led the pack with $2.56 billion in net flows last week. Arks 21Shares Bitcoin ETF, however, saw a considerable outflow of $458 million.
As gold ETFs witness outflows, investors are increasingly turning to Bitcoin as a hedge against U.S.-based assets. Between April 28 and May 2, gold ETFs experienced a total outflow of $1,941 billion, creating a $3.7 billion gap compared to Bitcoin ETFs, a gap similar to the previousweek.
Back with a Bang: Institutions Snap Up Bitcoin ETFs
During a panel discussion at Token2049 Dubai, BlackRock's Robert Mitchnick declared, "Bitcoin ETF flows are back in a big way." Mitchnick further elaborated that institutions and advisory firms now account for a significant portion of total Bitcoin ETF inflows, while high-net-worth individuals were more dominant when ETFs initially launched.
BlackRock's Head of Digital Assets suggested that the popularity of Bitcoin ETFs is linked to Bitcoin's increasing role as a safe haven or hedge that isn't correlated with the monetary risks arising from any specific nation. This perspective aligns with the recent trend of Bitcoin's profits at the expense of U.S. government bonds (and recently gold).
Bitcoin has also been strengthening its dominance in the cryptocurrency market. The BTC dominance ratio currently stands at its highest level in four years, as major altcoins like Ethereum, Solana, and Dogecoin lag well behind their January highs.
The potential approval of ETFs for XRP and Dogecoin later in the year may help balance the scales, yet Ethereum's case, which already boasts active ETFs in the U.S., suggests otherwise. Last week, Bitcoin ETF inflows outpaced Ethereum ETF inflows, with CoinGlass' Digital Asset Fund Flows report indicating that the latter attracted only $149.2 million in net inflows.
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- Amidst the surge in Bitcoin ETFs, Ethereum's ETF inflows are outpaced by Bitcoin's by more than 10:1, according to CoinShares.
- The digital asset market is witnessing a significant shift as institutions and advisory firms are increasingly investing in Bitcoin ETFs, according to BlackRock's Robert Mitchnick.
- Bitcoin's rising popularity as a safe haven and hedge against U.S.-based assets is driving the inflows into Bitcoin ETFs, as gold ETFs experience outflows.
- The BTC dominance ratio in the cryptocurrency market is currently at its highest level in four years, with major altcoins like Ethereum, Solana, and Dogecoin lagging behind their January highs.
- The potential approval of ETFs for XRP and Dogecoin later this year could help balance the scales, but Ethereum's strong position with active ETFs in the U.S. might suggest otherwise.
- Investors globally are looking into various crypto-related assets such as Bitcoin, Ethereum, and altcoins for opportunities in the rapidly evolving finance landscape, particularly in the realm of investing in digital assets through ETFs.
