After Bitcoin exceeded $80,000, a total of almost $1 billion inflow occurred into spot Bitcoin ETFs. An inflow of $532 million was recorded on Monday and $467.4 million on Tuesday. Thus, the total inflow for two days reached 999 million dollars. Since the beginning of May, Bitcoin ETFs have attracted a total of $1.63 billion, according to SoSoValue data. While the all-time total ETF inflow increased to 59.7 billion dollars, the total value of assets under management reached the highest level of the year with 109 billion dollars.
Strong demand in ETF flows and connection to traditional finance
Demand for Bitcoin ETFs appears to have increased significantly, especially following the $1.97 billion inflow in April. Experts state that the rise in Bitcoin price keeps the desire for investment alive in traditional financial channels. Investments in Bitcoin ETFs have remained remarkably stable despite the nearly 50 percent BTC price decline experienced in the last cycle. Bloomberg ETF analyst Eric Balchunas announced that there was only an 8 percent outflow from ETFs during this period. The analyst emphasized that the issue is directly linked to the impact of distribution networks in the financial sector.
In his broadcast on Roxom TV, Balchunas highlighted the dynamics behind the stability in ETF inflows with the words, “We should not underestimate the power of Wall Street’s large distribution networks.”
It is stated that the ETF structure facilitates investors’ access to Bitcoin during sudden fluctuations in the market, thus using traditional financial channels at an advanced level. Despite price volatility, demand for ETF products continued.
Inflows also rose in altcoin ETFs
This positive situation continued in prominent cryptocurrencies, especially Ethereum. Ether ETFs received $97.6 million inflows on Tuesday. XRP ETFs withdrew $11.3 million. A more limited inflow of $1.7 million was recorded in Solana ETFs.
A significant increase was observed in Dogecoin ETFs for the first time since April 27, and an inflow of approximately 400 thousand dollars attracted attention. Thus, DOGE’s total ETF inflows exceeded $10 million; The total asset value under management reached 14 million dollars.
While all these developments show that the diversity and demand in investment instruments has increased, the trend towards crypto ETFs continues despite the price volatility in recent weeks.
