US-based spot Bitcoin exchange-traded funds (ETFs) have recorded over $1 billion in inflows for two straight days, a first since their launch in January 2024.
Key Takeaways:
- US spot Bitcoin ETFs recorded over $1 billion in inflows for two consecutive days for the first time.
- BlackRock’s IBIT dominated Friday’s inflows with $953 million.
- Analysts warn that such high inflows may not be sustainable at current Bitcoin price levels.
On Friday, 11 spot Bitcoin ETF products reported combined inflows totaling $1.03 billion, following $1.17 billion the previous day, according to Farside data.
BlackRock’s IBIT accounted for the lion’s share of the inflows, attracting over $953 million on Friday.
Only Seven Days of $1 Billion+ Inflows Recorded Since ETF Launch
Nate Geraci, president of NovaDius Wealth Management, noted in an X post that since the launch of these ETFs, there have been only seven days with inflows exceeding $1 billion.
Notably, two of those occurred in the last two days. The previous high was $1.07 billion on January 17, 2024.
The $1.17 billion inflow on Thursday was the second-largest daily figure since inception, surpassed only by the $1.37 billion inflow on November 7, 2024, the day of Donald Trump’s US presidential election victory.
Matt Hougan, Bitwise Invest’s chief investment officer, highlighted that while the Bitcoin network produced roughly 450 BTC on Thursday, spot Bitcoin ETFs bought about 10,000 BTC.
Similarly, blockchain analytics firm Jan3 noted that on Wednesday, Bitcoin ETF demand was 22 times greater than the daily mined supply.
However, Jan3 CEO Samson Mow cautioned that such demand is unlikely to be sustainable at current price levels.
The strong demand contributed to $2.72 billion in inflows over the past five trading days.
Bitcoin’s price surged to new all-time highs, reaching $112,000 on Wednesday and climbing further to $118,780 on Friday, according to CoinMarketCap.
The price rally helped BlackRock’s spot Bitcoin ETF (IBIT) surpass $80 billion in assets under management (AUM) on Thursday.
ETF analyst Eric Balchunas called it the “fastest ETF” to reach this milestone, achieving it in just 374 days.
Recently, BlackRock reported earning more revenue from IBIT than from its flagship iShares Core S&P 500 ETF.
Balchunas added that total assets across all spot Bitcoin ETFs crossed $140 billion for the first time, largely driven by the recent price surge.
As reported, Bloomberg’s senior ETF analysts have assigned a 95% chance that the SEC will approve spot ETFs for Solana, XRP, and Litecoin this year, raising their previous odds from 90% amid growing optimism for institutional crypto products.
Institutional Bitcoin Demand Shifts From ETFs to Corporate Treasuries
Beyond ETFs, institutional Bitcoin demand is spreading into corporate treasuries.
Japan’s Metaplanet recently bought $237 million worth of BTC, becoming the fifth-largest corporate holder with a stack exceeding 15,500 BTC.
France’s The Blockchain Group and the UK’s Smarter Web Company also made new BTC treasury allocations this week, purchasing $12.5 million and $24.3 million worth of Bitcoin respectively.
Remixpoint, a Tokyo-listed firm, raised $215 million to fund a planned accumulation of 3,000 BTC.
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