The BlackRock spot Bitcoin exchange-traded fund (ETF) posted more than $290M in inflows on May 21, marking its highest daily inflow record in a month.
Data from Farside Investors shows that this is the highest inflows for the product in May. The changing investor sentiment on these products comes as Bitcoin rallied past $70,000 on market optimism that more crypto ETFS will launch in the US market.
Data from the IBIT product page shows that the product now has over 281,000 Bitcoins valued at more than $19 billion.
Bitcoin ETFs See Renewed Interest
The recent data on the BlackRock IBIT ETF marks a significant recovery for the product. Earlier this month, the IBIT ETF witnessed declining interest from investors. The product saw low or even zero inflows during the first half of the month.
A similar sentiment was also seen in April after IBIT posted its first-ever daily outflows since its launch in January.
Despite the declining interest in the product, the first quarter of 2024 saw some of the largest asset managers on Wall Street disclose their investments in spot Bitcoin ETFs. Millennium Management, JPMorgan, and BNB Paribas are among the firms that disclosed Bitcoin ETF holdings.
While IBIT took the giant share of the trading volumes on Tuesday, other spot Bitcoin ETFs also posted inflows. Fidelity’s ETF took in $25 million in inflows.
Wall Street giants are again dominating the Bitcoin ETF market. On May 23, Fidelity’s inflows reached $74 million. On the same day, Grayscale posted around $16 million in outflows.
Spot Ether ETFs Trigger Market Recover
The growing interest in spot Bitcoin ETFs comes amid growing optimism from the crypto market that the US Securities and Exchange Commission (SEC) will approve spot Ethereum ETFs.
The SEC recently asked the applicants of these products to file amended forms 19b-4s, with analysts saying there is an increased chance that the products will be approved.
The market had earlier anticipated that the SEC would deny Ether ETFs, given the investigations against the Ethereum Foundation. Moreover, the SEC previously remained quiet on these products and only recently started showing interest after engaging with applicants and exchanges.
The development has triggered gains across the broader cryptocurrency market. Bitcoin is up 9.4% in the last week to trade above $70,000, while Ethereum has gained by 27% to around $3,700.
