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U.S. Bitcoin ETF Inflows Reach Two-Week High Amid Price Surge
On May 15th, U.S. spot Bitcoin ETF inflows reached a notable milestone, hitting a peak of $303 million as the price of Bitcoin soared beyond $66,000. According to data from Farside Investors, all U.S. spot Bitcoin ETFs, with the exception of BlackRock’s iShares Bitcoin Trust (IBIT), experienced inflows on that day. Notably, IBIT remained static with zero inflows or outflows for the third consecutive day, highlighting a divergence in investor activity.
Leading the pack in terms of ETF inflows was Fidelity’s FBTC, which recorded a substantial intake of $131.3 million. Additionally, Grayscale’s GBTC saw a noteworthy resurgence in investor interest, garnering $27 million in inflows – marking its first day of positive influx after a week of stagnation.
The surge in ETF inflows coincided with a notable uptick in Bitcoin’s market value. This surge was partly attributed to a recent report by the U.S. Bureau of Labor Statistics, which indicated a marginal easing of inflation figures for the month of April.
Institutional Adoption on the Rise
This week also saw the disclosure of quarterly 13F filings with the U.S. Securities and Exchange Commission (SEC), shedding light on heightened institutional involvement in spot Bitcoin ETFs. Among these filings, it was revealed that several prominent institutional investors had established significant positions in Bitcoin ETFs.
One standout example was Millennium Management, a hedge fund managing assets worth $64 billion, which boasted holdings of nearly $2 billion across various Bitcoin ETFs, including IBIT, FBTC, GBTC, ARKB by Ark Invest, and BITB by Bitwise. Elliot Capital emerged as another key player, with holdings amounting to $12 million in IBIT, while Apollo Management Holdings revealed holdings exceeding $53 million in ARKB.
Notably, the State of Wisconsin’s Investment Board made waves by becoming among the first U.S. public pension funds to allocate funds towards spot Bitcoin ETFs. In their recent 13F filing, the Board disclosed investments totaling $163 million in Bitcoin ETFs, with holdings spanning one million shares in GBTC valued at $63.7 million and 2.5 million shares in IBIT valued at $99.2 million.
It is important to note that a 13F filing represents a quarterly report submitted by large hedge funds and investment managers detailing their asset allocations. These reports are made public and filed with the U.S. Securities and Exchange Commission, typically 45 days following the close of each quarter.
Industry Developments and Future Outlook
Recent industry discourse has also alluded to a growing acceptance and contemplation of Bitcoin ETFs within traditional financial entities. Manuel Nordeste, vice president at Fidelity Digital Assets, highlighted that defined benefit plans and pension funds are beginning to engage in discussions with their respective investment committees, hinting at a potential shift in investment strategies.
Moreover, legislative initiatives such as the bill before the Arizona state senate underscore the evolving landscape regarding Bitcoin ETFs in institutional investment portfolios. The bill underscores the importance of monitoring digital asset ETFs, such as those involving Bitcoin, and evaluating their implications for inclusion within investment portfolios held by entities like retirement plans for government workers.
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