Bitcoin ETFs record inflows of US$116 million in the week

A mix of excitement and disappointment marked Bitcoin (BTC) ETF week. On Friday (10), Grayscale reported more than US$100 million in outflows, which may have even helped in the subsequent drop in Bitcoin’s price. According to CoinGecko, the cryptocurrency closed down 4% in the last seven days.

However, while Grayscale’s fund saw outflows, the other ETFs prospered. In total, the funds received more than $116 million in inflows this week due to the excellent start to the week.

The return of positive flows

On Monday (6), ETFs registered the largest flow, with inflows of US$ 217 million. This increase highlighted the growing appetite of investors, but the flow reduced throughout the week.

The positive side was that even GBTC recorded positive flow by recording inflows of US$3.9 million. However, this number was much lower than the US$64 million inflow seen the previous week.

Meanwhile, Fidelity ETF (FBTC) saw a significant inflow of $99.19 million. However, on Tuesday (7), ETFs saw withdrawals of US$ 15.7 million. GBTC alone recorded withdrawals of almost US$30 million

Despite these losses, FBTC and BTCO, WisdomTree’s ETF, managed to raise inflows of US$4.1 million and US$6 million, respectively. Then, on Wednesday (8), ETFs received US$11.5 million. The value is modest, but there were no departures.

In this sense, the Bitwise ETF (BITB) was the only one that had positive inflows. On the other hand, Blackrock’s iShares Bitcoin Trust (IBIT) and Grayscale’s GBTC ETF reported zero flows, signaling mixed sentiment among investors.

The following day, Thursday (9), there were significant net outflows, totaling US$ 11.3 million. Once again, GBTC led the day’s losses, which reached US$43 million. But BlackRock’s IBIT recorded an inflow of US$14.2 million.

Finally, Friday (10) marked another day of outflows, with GBTC reporting US$100 million in net outflows. This brought total outflows across all ETFs to $84 million. Once again, IBIT went against the grain and had an inflow of US$ 12.43 million.

The week ended with the price of Bitcoin falling from US$63,000 to US$60,000 on Saturday (11). The drop was potentially influenced by exorbitant outflows of money from ETFs throughout the week. However, the good performance at the beginning of the week maintained the positive flow.

Institutional adoption of Bitcoin ETFs soars

JPMorgan, the world’s largest banking institution, disclosed that it has substantial holdings in several Bitcoin ETFs available on the market. According to the bank, its portfolio includes shares in ETFs from BlackRock, Fidelity and Bitwise. This portfolio totals around US$1 million.

Additionally, JPMorgan’s investment is notable because CEO Jamie Dimon has repeatedly criticized Bitcoin, but the institution has not adopted the same stance. Another bank that holds BTC is Wells Fargo, which revealed that it has 2,245 shares of GBTC.

These disclosures underscore a broader trend of institutions adopting Bitcoin ETFs as viable investment vehicles. Institutional adoption brings with it a multitude of benefits for the cryptocurrency market, such as increased liquidity, stability and credibility.