Bitcoin ETFs continue to attract massive inflows despite a slight price correction
Despite a slight correction in Bitcoin’s price, Bitcoin ETFs in the United States have recorded a second consecutive day of massive inflows, totaling over $1.77 billion in two days.
The flagship IBIT fund from BlackRock accounted for the majority of these investments, attracting $872 million in a single day, a record number that contributed to Bitcoin ETFs holding an impressive total of 1 million BTC in their reserves.
This movement reflects a shift of capital towards Bitcoin, increasing its market dominance to 59.8%, often at the expense of Ethereum, whose weekly performance is lagging behind BTC by nearly 10%.
Record inflows for Bitcoin despite a slowdown
After a week of significant gains, Bitcoin paused its rapid rise, experiencing a temporary 0.5% dip before stabilizing above $72,000. Profit-taking impacted the market following a strong weekly gain, reflecting a robust pace of growth.
Despite this slight correction, Bitcoin ETFs in the United States recorded a second consecutive day of massive inflows, with a cumulative influx of over $1.77 billion in two days. This movement reflects a strong institutional interest in Bitcoin, a trend supported by its increasing dominance in the cryptocurrency market.
A dominant position for Bitcoin at the expense of Ethereum
Bitcoin ETFs saw additional injections of $893 million on Wednesday, following $879 million the previous day. BlackRock’s flagship IBIT fund accounted for the majority of these investments, attracting $872 million, a record figure.
While other funds attracted capital more modestly, Bitwise’s BITB product experienced net outflows of $23.9 million, an anomaly in the context of strong institutional demand. These numbers illustrate a shift of capital towards Bitcoin, marking an increase in its dominance to 59.8% in the market, often at the expense of Ethereum, with ETH’s weekly performance trailing nearly 10% behind BTC.
With this record-breaking day, BlackRock’s IBIT allows all Bitcoin ETFs to reach an impressive total of 1 million BTC held in their reserves.
Towards enhanced institutional capitalization for Bitcoin
The cumulative inflows since the introduction of Bitcoin ETFs in January now reach $24 billion, highlighting the significant institutional capital captured by these financial products. The sustained interest from institutional investors supports the thesis of a sustainable rise of Bitcoin in portfolios, often at the expense of Ethereum, whose market share and relative returns are fading compared to BTC.
The continued increase in inflows towards ETFs reflects not only enthusiasm for Bitcoin’s recent performance but also a growing desire from large investors to secure their exposure to digital assets in a complex and volatile market environment.
