Bitcoin ETFs Surge to Nearly $50B in Net Inflows After Two-Day Rally

TLDR

Table of Contents

U.S. Bitcoin ETFs hit $50B in net inflows, marking a strong year-to-date performance.
Fidelity’s FBTC led the latest Bitcoin ETF surge with $421M in inflows.
BlackRock’s IBIT now generates more revenue than its S&P 500 ETF.
Bitcoin ETFs reach $128B AUM, with IBIT holding $73.6B of that total.

The U.S. spot Bitcoin exchange-traded funds (ETFs) saw a sharp rebound this week, with over $1 billion in net inflows recorded in just two days. This surge has helped bring the cumulative net inflows to nearly $50 billion since the launch of the funds in January 2024. Bitcoin’s positive price movement over Wednesday and Thursday played a key role in this surge, with the digital asset briefly surpassing the $110,000 mark before experiencing a slight correction.

Spot Bitcoin ETFs Report Strong Performance

Bitcoin ETFs have enjoyed substantial growth in the past two days, with $407.8 million in net inflows on Wednesday, followed by another $601.8 million on Thursday. This uptick in inflows occurred after a minor setback earlier in the week, where $342.2 million in outflows were recorded on Tuesday.

According to data compiled by The Block, Fidelity’s FBTC fund led the way in the latest surge, contributing $184 million on Wednesday and $237.1 million on Thursday.

BlackRock’s IBIT fund, traditionally a dominant player in the Bitcoin ETF space, experienced a slower start to July, with no flows recorded on the first two days of the month. However, the fund returned with $224.5 million in net inflows on Thursday. Despite this temporary lull, IBIT continues to be the leading Bitcoin ETF in terms of assets under management (AUM).

Cumulative Inflows Near $50B

As of Thursday, U.S. Bitcoin ETFs have generated nearly $50 billion in cumulative net inflows since their debut. Year-to-date, the funds have attracted $14.5 billion in new capital. BlackRock’s IBIT fund alone accounts for a significant portion of this total, with approximately $3.8 billion of the $4.7 billion in net inflows seen during a 15-day streak earlier this year.

As of now, the total assets under management across all Bitcoin ETFs have risen to nearly $128 billion, driven by the strong performance of IBIT, which boasts $73.6 billion in AUM.

The Bitcoin ETFs’ strong growth has positioned them as a major player in the cryptocurrency investment space, attracting institutional and retail investors alike. With increasing trading volumes and positive sentiment around Bitcoin’s price movement, the funds are expected to continue to see strong demand.

Bitcoin ETFs and BlackRock’s Continued Dominance

The continued success of BlackRock’s IBIT fund is notable. As one of the most dominant Bitcoin ETFs, IBIT has now generated more revenue for BlackRock than some of the company’s flagship products, including its iShares S&P 500 ETF. According to Nate Geraci, president of NovaDius Wealth Management, IBIT is now one of the top three highest revenue-generating ETFs for BlackRock.

“It generates more fee revenue for BlackRock than the iShares S&P 500 ETF. Simply a machine,” he stated on Thursday.

Bloomberg ETF analyst Eric Balchunas further emphasized the fund’s impressive growth. “IBIT is now the 3rd highest revenue-generating ETF for BlackRock out of 1,197 funds, and it’s only $9 billion away from becoming #1,” he remarked. With this rapid growth, IBIT has cemented its place as a cornerstone of BlackRock’s ETF portfolio.

As of Thursday, Bitcoin ETFs also saw their highest daily volume since May, generating a total of $5.3 billion in transactions. The majority of this volume came from BlackRock’s IBIT fund, which alone contributed $4.1 billion. Since their launch, Bitcoin ETFs have seen over $1 trillion in cumulative trading volume.

The Bitcoin ETF market continues to evolve, with increasing institutional interest and strong inflows further validating their role in the broader cryptocurrency landscape. The recent surge in net inflows shows that demand for Bitcoin investment products remains robust, especially as the digital asset’s price continues to rise.

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