Investors put cash into U.S.-listed Bitcoin Monday’s ETF proves that Wall Street still loves the cryptocurrency despite recent price turmoil.
According to data from Farside Investors, the total net inflow of these 11 ETFs was US$561.8 million, which was the largest single-day buying volume since January 14.
BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s FBTC led the way, with inflows of $142 million and $153.3 million respectively, suggesting demand will continue even as price momentum wanes. Bitcoin fell to a nine-month low over the weekend, raising fears of disorderly price action in global markets on Monday. However, contrary to these concerns, the market has stabilized somewhat.
The renewed inflows ended a nearly ten-day streak of outflows as investors dumped millions of dollars as Bitcoin fell from around $98,000 to below $75,000.
Significant differences remain. According to data from checkonchain, spot Bitcoin is about 40% below October’s all-time high, but assets under management in pot ETFs are about 1.3 million Bitcoin, which is only about 5% lower than October’s peak of 1.37 million Bitcoin.
still underwater
While the average cost basis of the U.S. Bitcoin ETF is currently around $84,099, spot Bitcoin is trading at nearly $78,000.
Bitcoin has previously traded below the ETF cost basis, especially in the second half of 2024, making this an important test of ETF buyer confidence. If they capitulate, the resulting redemptions could add to bearish pressure on the market.