U.S. Spot Bitcoin ETFs Attract $1.1 Billion in 3 Days, Reach 2023 Peak

The recent performance of U.S. Bitcoin exchange-traded funds (ETFs) signals a potential turning point in the cryptocurrency market. Over a span of three days, these ETFs attracted an impressive $1.1 billion in net inflows, marking the most significant inflow since January.

Key Financial Figures

As per data from SoSoValue, this influx has placed the funds approximately $815 million ahead, even accounting for Monday’s net outflow. This turnaround is noteworthy as it follows a consecutive five-week streak of net outflows.

• Total Inflows: $1.1 billion in 3 days
• Leading Fund: BlackRock’s iShares Bitcoin Trust (IBIT) with $652 million
• Grayscale’s GBTC: Largest single-day inflow since its conversion from a trust to an ETF

Market Indicators

The renewed interest in Bitcoin ETFs points to a revival of U.S. demand. This observation is further supported by the Coinbase Premium Index, which has risen after spending 40 days in negative territory. The index serves as a metric for the price variance between Bitcoin on Coinbase and the overall global market, offering insights into U.S. institutional sentiment.

Bitcoin Holdings and Asset Management

Current reports indicate that U.S. spot ETFs now hold a total of 1.29 million BTC. This figure reflects a strong asset management position that is less than 10% below its peak in October.

Price Context

Despite the optimistic inflows, Bitcoin’s spot price remains 45% below its record high from October, oscillating around the $60,000 mark. This price consolidation suggests caution among investors.

Chicago Mercantile Exchange Trends

Another notable trend is the declining open interest on the Chicago Mercantile Exchange (CME), now at 107,780 BTC, as reported by Glassnode. This downturn indicates that many of the recent ETF inflows are taking a long position on Bitcoin.

Investment Strategies

The CME’s structure allows institutions to engage in basis trading, where they can hold long positions in spot Bitcoin while simultaneously shorting futures. The current decline in futures open interest implies that investors might be favoring more straightforward long positions, particularly through ETFs.

Overall, the inflow of $1.1 billion into U.S. Bitcoin ETFs within three days marks a pivotal moment. Investors appear to be steadily regaining confidence, potentially leading to a more robust future for Bitcoin and its associated financial products.