US Spot Bitcoin ETFs Rebound with $622M Inflows, Breaking Three-Day Losing Streak

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Ruholamin Haqshanas

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Ruholamin Haqshanas

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

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November 7, 2024

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US spot Bitcoin exchange-traded funds (ETFs) saw a dramatic turnaround on November 6, drawing in approximately $622 million in net inflows and ending a three-day losing streak.

The rebound comes even as BlackRock’s iShares Bitcoin Trust (IBIT) experienced its largest single-day outflow since its launch.

According to data from SoSo Value, IBIT faced net outflows of around $69 million yesterday, while Valkyrie’s BRRR ETF recorded a smaller outflow of $2 million.

IBIT Sees Record Trading Volume

The outflows from IBIT were surprising, given its robust start earlier this year, where it saw over $1 billion in shares traded within just 20 minutes of opening.

Despite the outflows, trading activity for IBIT surged on Monday, with Bloomberg ETF analyst Eric Balchunas noting it had its highest trading-volume day, hitting $4.1 billion.

The level of activity eclipsed daily trading volumes for major stocks like Berkshire Hathaway, Netflix, and Visa.

Balchunas highlighted that such high volumes don’t necessarily translate to inflows, as they reflect both buying and selling activity.

On the broader ETF landscape, Fidelity’s FBTC led the way with nearly $309 million in net buying, followed by ARK Invest’s ARKB, which took in $127 million.

Grayscale and Bitwise also recorded significant inflows, with Grayscale’s BTC attracting $109 million, marking its second-largest single-day inflow since launch.

Bitwise’s BITB fund added $101 million, its strongest performance since February.

Grayscale’s flagship GBTC recorded a more modest $31 million in net inflows, while VanEck’s HODL ETF secured around $17 million.

These gains reflect renewed optimism in the crypto market amid strong trading volumes and investor interest.

The recovery in ETF inflows comes as Trump wins back the White House.

The former president’s campaign promises, including proposals for a national Bitcoin reserve, support for crypto miners, and a pledge to form an advisory committee for favorable regulation, have only added to the market’s confidence.

His victory has also sparked optimism about potential SEC leadership changes and more supportive policies for the industry.

Matt Hougan, Bitwise’s chief investment officer, sees Trump’s win as a potential catalyst for a “golden age” in crypto, emphasizing favorable regulatory prospects.

Bitwise, one of 11 firms to launch spot Bitcoin ETFs in the US this year, has seen significant success.

BlackRock’s IBIT, the largest among them, holds 429,185 BTC valued at $30 billion.

Digital Asset Products See Record Inflows of $2.2 Billion

Last week, digital asset investment products experienced a significant surge, attracting inflows of $2.2 billion, bringing the total year-to-date inflows to a historic $29.2 billion.

The impressive influx has pushed total assets under management (AuM) to over $100 billion for only the second time ever, reaching $102 billion—similar to levels seen in early June 2024.

Bitcoin was the primary beneficiary, absorbing the entire $2.2 billion inflow, while short-Bitcoin products attracted an additional $8.9 million.

In contrast, Ethereum saw only $9.5 million in inflows, with Solana gaining $5.7 million, while other altcoins, like Polkadot and Arbitrum, recorded minor inflows.

The U.S. market led the way with the full $2.2 billion in inflows, while Germany recorded modest inflows of $5.1 million.