Bitcoin ETFs See Surge in Inflows as Price Tops Investor Cost Basis
US spot Bitcoin exchange-traded funds experienced a significant influx of capital, recording over $1.7 billion in net inflows across two days as the cryptocurrency’s price climbed above the estimated average cost basis for ETF investors.
The funds saw $715 million in net inflows on Tuesday, building on a robust $999 million on Monday, according to data from SoSoValue. This surge brings the total net assets for US spot Bitcoin ETFs to approximately $111 billion as of Tuesday. This represents a 56% increase from their recent low of roughly $71 billion on June 30. However, the total asset value remains about 13% shy of the peak of $128 billion reached on January 14.
Among the top performers on Tuesday, BlackRock’s iShares Bitcoin Trust (IBIT) attracted $350 million in inflows. Fidelity’s Wise Origin Bitcoin Fund (FBTC) followed with $257 million, and the Grayscale Bitcoin Mini Trust garnered $99 million, according to Farside Investors.
The recent inflows coincide with a positive development for investors. James Seyffart, an ETF analyst at Bloomberg Intelligence, noted on Monday that the average Bitcoin ETF holder had returned to profitability for the first time since January. This turnaround occurred as Bitcoin’s price surpassed his estimated ETF cost basis of $81,722 per coin.
On Tuesday, Bitcoin was trading around $86,000, according to CoinGecko. After a brief rally above $87,000 on Wednesday, BTC was trading at $86,467 at the time of publication. This marks a 1.2% increase over the preceding 24 hours and a 13.8% gain over the past seven days. The broader cryptocurrency market capitalization has also reclaimed the $3 trillion mark, driven by the rally in Bitcoin and other altcoins.
