A new era in cryptocurrency investment

• Us Bitcoin Spot ETFs saw positive flows of $343 million for the first time in seven days.
• Grayscale’s Bitcoin Trust recorded its first inflow since its inception after burning more than $12 billion.
• Institutional interest has been reignited as Bitcoin reclaims the $63,500 threshold.

After seven consecutive days of negative flows, the US Bitcoin spot ETF recorded positive fund flows of $343 million. Grayscale’s Bitcoin Trust also recorded inflows for the first time since its founding. This comes as Bitcoin reclaims the $63,500 threshold, sparking new institutional interest.

US Bitcoin Spot ETF recorded positive fund flows.

The U.S. Bitcoin spot exchange-traded fund (ETF) witnessed positive fund flow for the first time after seven consecutive days of negative flow trading. The U.S. Bitcoin spot ETF closed Friday trading with net inflows of $343 million, according to public records. These inflows were influenced by Fidelity’s FBTC, which alone saw positive flows of $102.6 million.

Grayscale’s Bitcoin Trust sees first-ever inflows

Even more noteworthy is that Grayscale’s Bitcoin Trust (GBTC) recorded its first inflow since its inception after burning over $12 billion. Notably, the Grayscale ETF saw positive flows of $63 million for the first time since approval in January. Meanwhile, the company has recorded outflows of more than $12 billion since its approval.

Other U.S. issuers see positive trends.

Other U.S. issuers that saw positive trends on Friday included BlackRock (IBIT), Bitwise (BITB), Ark Invest, Franklin (EZBC) and Invesco Galaxy (BTCO). On the other hand, Valkyrie (BRRR) and Wisdom Tree (BTCW) ETFs recorded 0% inflow.

Bitcoin ETF market is frozen due to price correction.

Notably, the last inflow of funds into the U.S. Bitcoin ETF market occurred before Friday, on April 25th. Flows fell into negative territory as BlackRock’s ETF recorded consecutive trading days with zero inflows. Moreover, the Bitcoin price correction over the past few weeks has frozen flows into the ETF market. For example, after Bitcoin plummeted to $56,555 on May 1, issuers of these ETFs saw massive outflows of $564 million the next day. In essence, institutional investors have adopted a cautious approach when it comes to investing in Bitcoin products amid the market decline.

conclusion

Recent positive fund flows from the U.S. Bitcoin Spot ETF and Grayscale’s Bitcoin Trust signal renewed institutional interest in Bitcoin. This comes as Bitcoin reclaims the $63,500 threshold. However, the market is still highly volatile, so institutional investors need to invest cautiously.