U.S. Spot Crypto ETFs Saw Strong Inflows on Wednesday, JPMorgan Says
JPMorgan’s report highlights significant net inflows into U.S.-listed spot cryptocurrency exchange-traded funds (ETFs) on Wednesday, May 28th, 2024, despite declines in the underlying asset prices of both Bitcoin (BTC) and Ether (ETH). This influx of investment demonstrates continued investor interest in the crypto market.
Ether (ETH) ETFs experienced notable growth, with an estimated $84 million in net inflows. BlackRock’s iShares Ethereum Trust (ETHA) led the way, attracting $52 million. Fidelity’s Ethereum Fund (FETH) contributed another $26 million, while Grayscale’s mini ETH Trust and Invesco/Galaxy’s QETH added $5 million and $2 million respectively. The notional trading volume for ether ETFs reached $459 million, exceeding their post-launch daily average of roughly $375 million.
The inflows into Bitcoin (BTC) ETFs were even more substantial, totaling an estimated $431 million. BlackRock’s iShares Bitcoin Trust (IBIT) was the primary driver, receiving $479 million in new investments. This significant inflow was partially offset by redemptions from ARK 21Shares Bitcoin ETF (ARKB), which saw $34 million in outflows, and Fidelity’s FBTC, with $14 million in outflows. Despite Bitcoin’s 2.1% price drop, trading volume remained high at $3.5 billion, surpassing the historical daily average of $2.8 billion since their January 2024 launch.
The substantial inflows into Bitcoin ETFs are further underscored by a Bloomberg report indicating a shift in investor preference from gold to Bitcoin. Over the past five weeks, U.S. Bitcoin ETFs have attracted $9 billion in inflows, contrasting with $2.8 billion in outflows from gold-backed funds. This trend suggests a growing confidence in Bitcoin as an investment asset, potentially driven by factors such as the increasing regulatory clarity surrounding cryptocurrencies and the launch of spot Bitcoin ETFs. The sustained investor interest, reflected in these significant inflows even amidst price dips, signifies the continued relevance and potential of Bitcoin and Ether in the evolving financial landscape.
