Investors are showing increased interest in Bitcoin ETFs, despite a 7% drop in the price of Bitcoin in June. Spot bitcoin ETFs saw net inflows of $790 million during the month, indicating a growing confidence in the cryptocurrency market. This is a significant shift from previous months when heavy outflows were observed during sharp declines in the price of Bitcoin, such as in April.
One of the leading spot ETFs, BlackRock’s iShares Bitcoin Trust (IBIT), saw inflows topping $1 billion, surpassing the outflows from the high-fee Grayscale Bitcoin Trust (GBTC). The positive inflow streak in June could be attributed to the enthusiasm surrounding the possibility of a spot ether ETF. Regulators and potential issuers have been working towards getting approval for a spot ether ETF, signaling a growing acceptance of cryptocurrencies in the financial system.
While some analysts have speculated that the rapid growth in assets for spot ETFs is due to speculative trading, Bloomberg Intelligence senior ETF analyst Eric Balchunas suggests otherwise. He noted that older investors, or “Boomers,” are proving to be resilient holders of Bitcoin, contrary to popular belief. The positive inflows in June also indicate a shift in investor sentiment towards cryptocurrencies.
The upcoming approval of a spot ether ETF could further boost investor confidence in the cryptocurrency market. Ether ETF issuers are expected to re-submit a filing before July 8, raising hopes for the launch of the ETFs later this month. This development could not only attract more investment into the cryptocurrency market but also signal a broader acceptance of digital assets by regulators.
It is important to note that CoinDesk, the media outlet reporting on these developments, follows strict editorial policies to ensure journalistic independence. CoinDesk was acquired by the Bullish group in November 2023, a regulated digital assets exchange with interests in various blockchain businesses. CoinDesk operates independently with an editorial committee to safeguard its journalistic integrity.
Helene, a New York-based reporter covering Wall Street and crypto exchanges, provides insights into the rise of spot Bitcoin ETFs. She emphasizes the growing interest in cryptocurrencies among investors and the potential impact of regulatory approvals on the market. Helene’s expertise in business reporting and cryptocurrencies positions her as a valuable source of information in the evolving landscape of digital assets.