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Last week witnessed a steady surge for Bitcoin ETFs, amassing an impressive $1.8 billion in investments.
Explore SCENE Last week witnessed a whopping $1.8 billion influx into US-based Bitcoin Exchange-Traded Funds (ETFs), as per data from CoinGlass. This influx marked the continuation of a positive trend that initiated on April 17.
Thursday and Friday were the stars of the show, drawing in a tremendous $423 million and $675 million respectively, making Friday's intake the seventh-highest of the year. CoinShares' Digital Asset Fund Flows report reveals that Bitcoin ETF inflows dwarfed their Ethereum counterparts by an astounding 10:1 ratio.
BlackRock's iShares ETF emerged as the week's big victor, boasting a staggering $2.56 billion in net flows. In contrast, several competitors experienced significant weekly outflows, with the Ark 21Shares Bitcoin ETF witnessing a substantial $458 million shrinkage.
As gold ETFs face outflows, investors appear to be increasingly favouring Bitcoin as a hedge against U.S. assets. Between April 28 and May 2, gold ETFs reported a total outflow of $1,941 billion, resulting in a $3.7 billion gap between Bitcoin and gold ETF flows, comparable to the $4 billion gap observed in the previous week.
The Roaring Comeback
During the Token2049 Dubai panel last week, BlackRock's Robert Mitchnick stated that Bitcoin ETF flows are "back in a big way." Institutions and advisory firms are reportedly accounting for a progressively larger segment of Bitcoin ETF inflows, while individual investors dominated the scene when ETFs first entered the market.
According to Mitchnick, the allure of Bitcoin ETFs is linked to how Bitcoin has been demonstrating safe-haven characteristics, offering a hedge uncorrelated to monetary risks stemming from specific countries. This theory aligns with Bitcoin seemingly benefiting from a flight away from U.S. assets, as treasury yields have risen in response to the Trump administration's fluctuating tariff policies.
While Bitcoin has been thriving at the expense of U.S. government bonds (and recently gold), it has also been consolidating its dominance within the cryptocurrency market. The BTC dominance ratio currently hovers at its highest level in four years, with major altcoins like Ethereum, Solana, and Dogecoin lagging far behind their January highs.
The potential approval of ETFs for cryptocurrencies such as XRP and Dogecoin later this year might help rectify this imbalance. However, Ethereum's experience, which already boasts active ETFs in the U.S., somewhat contradicts this expectation, as Bitcoin ETF inflows far outstripped Ethereum ETF inflows last week. CoinGlass' Digital Asset Fund Flows report shows that Ethereum ETFs attracted relatively modest $149.2 million in net inflows.
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- The influx of $1.8 billion into US-based Bitcoin Exchange-Traded Funds (ETFs) last week, as per data from CoinGlass, marks the continued positive trend that began on April 17.
- Thursday and Friday were the stars of the week, with a tremendous $423 million and $675 million in inflows respectively, making Friday the seventh-highest of the year.
- BlackRock's iShares ETF led the week with a staggering $2.56 billion in net flows, while several competitors experienced significant weekly outflows, such as the Ark 21Shares Bitcoin ETF with a substantial $458 million shrinkage.
- As gold ETFs face outflows, Bitcoin seems to be increasingly favored as a hedge against U.S. assets, with Bitcoin ETF inflows dwarfing their Ethereum counterparts by an astounding 10:1 ratio, as per CoinShares' Digital Asset Fund Flows report.
- Institutions and advisory firms are reportedly accounting for a growing segment of Bitcoin ETF inflows, while individual investors dominated the scene when ETFs first entered the market.
- Robert Mitchnick, from BlackRock, stated during the Token2049 Dubai panel last week that Bitcoin ETF flows are "back in a big way."
- Bitcoin has been demonstrating safe-haven characteristics, offering a hedge uncorrelated to monetary risks stemming from specific countries, according to Mitchnick.
- The BTC dominance ratio currently hovers at its highest level in four years, consolidating Bitcoin's dominance within the cryptocurrency market, with major altcoins like Ethereum, Solana, and Dogecoin lagging far behind their January highs.
- Subscribe to our Daily Debrief newsletter to stay updated on the latest happenings in the realms of Bitcoin and Ethereum.
