US-traded spot Bitcoin exchange-traded funds (ETFs) reached a historic milestone on Wednesday, surpassing $50 billion in total net inflows. This achievement is being considered a critical step in Bitcoin's institutionalization process.
Spot Bitcoin ETFs Surpass $50 Billion Net Inflow Threshold on Surge of Institutional Demand
According to data provider SoSoValue, 12 spot Bitcoin ETFs recorded a total of $218 million in net inflows on Wednesday, bringing the total net inflow to $50.16 billion. Spot Bitcoin ETFs have seen strong momentum in April, May and June, with billions of dollars in uninterrupted capital inflows.
BlackRock's IBIT product saw the most inflows of the day, with $125.5 million. Ark & 21Shares' ARKB fund saw net inflows of $56.96 million, while Grayscale's Mini Bitcoin Trust saw net inflows of $15.8 million. Other major providers such as Fidelity, Bitwise, Valkyrie, and Invesco also reported positive inflows.
BTC Markets analyst Rachael Lucas commented on this milestone with these words:
“Spot Bitcoin ETFs surpassing $50 billion is a defining moment in the institutionalization of Bitcoin. This is not a retail investor frenzy; this is a steady flow of capital from asset managers, corporate treasuries, and wealth management platforms.”
According to Lucas, demand for Bitcoin is rising due to both geopolitical tensions and former President Donald Trump's promises of aggressive interest rate cuts. Bitcoin's stable supply and global liquidity make it a prominent asset during this period. However, the real disruptor is the ETF format.
“These ETF products are regulated and transparent, making them easily accessible to investors through stock and bond infrastructures. They make participation easy.”
On the same day, Bitcoin broke new all-time highs, reaching $112,152. The leading cryptocurrency, which was trading at $110,990 at press time, has gained 2% in the last 24 hours.
Spot Ethereum ETFs are also continuing their upward trend. Ether ETFs saw net inflows of $211.32 million on Wednesday, bringing their total net inflows to $4.72 billion so far.
*This is not investment advice.
