Spot Bitcoin ETFs picks up steam with a $770 million flow this week. This pushes total net assets over $137 billion, according to Sosovalue data. Just on July 3, these funds pulled in $601.94 million. Now, total ETF assets account for 6.29% of Bitcoin’s entire market cap. Moreover, trading volume stayed strong, reaching $2.51 billion for the day.
Leading the inflows were Fidelity’s FBTC and BlackRock’s IBIT. FBTC pulled in $237.13 million, while IBIT added $224.53 million. Combined, these two funds control $99 billion in net assets. Their market share accounts for 4.53% of all spot Bitcoin ETFs, an indication of institutional preference for low-fee, high-liquidity products.
Institutions Fuel the Bitcoin ETF Boom
Since the January 2024 launch of spot Bitcoin ETFs, institutional interest has exploded. Many investors, previously cautious about direct crypto ownership, now access Bitcoin via ETFs. This structure eliminates technical risks and simplifies accounting for advisors and funds.
According to Bloomberg’s Eric Balchunas, investment advisers hold nearly half of the $21 billion reported via 13F filings. Hedge funds hold another $6.9 billion worth of ETF shares. Brokerages and holding firms follow closely. These players manage BTC exposure for both retail and corporate clients.
Low Fees Drive Inflows, High Costs Drive Outflows
ARK 21Shares’ ARKB posted $114.25 million in daily inflows, while Bitwise, VanEck, and Franklin saw healthy gains. Meanwhile, Grayscale’s GBTC failed to attract new funds. It now shows a -$23.33 billion cumulative outflow, likely driven by its high 1.50% fee.
Even with slight price dips between -0.18% and -0.56%, investors are still holding. The inflows and trading volumes keep climbing, which shows there’s a solid institutional interest in Bitcoin through ETFs.
Also Read: Bitcoin ETFs Pull $9B Inflows, Outpace Gold: Schiff Silent?
