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Bitcoin ETFs End Three-Day Outflow Streak with Third Largest Inflow
- Spot Bitcoin ETFs, launched nine months ago, have already surpassed some major ETFs in total funds received.
- Growth projections are robust, with expectations to double in size by 2025 and quadruple by 2027.
- Fidelity Wise Origin Bitcoin leads with strong recent inflows, nearing a total of US$10 billion, while BlackRock’s IBIT dominates at US$21.7 billion.
- While IBIT saw no new inflows and a negative flow the previous day, overall, it still maintained a strong week with significant net inflows.
Spot Bitcoin exchange-traded funds (ETFs) have certainly made an impression in 2024. Approved in January 2024, just nine months ago, these funds have taken in more funds than some of the biggest ETFs.
Some observers even expect the funds to double in 2025 and quadruple by 2027.
Fidelity ETF Close to Hit Milestone
While BlackRock’s IBIT continues to dominate the funds – having amassed US$21.7 billion (AU$32.25 billion) – other funds are also slowly catching up. The Fidelity Wise Origin Bitcoin fund had the strongest net inflows on Friday, with a whopping US$117.1 million (AU$174 million) in net inflows.
The fund is now close to having US$10 billion (AU$14.85 billion) in total funds, still dwarfed by IBIT’s US$21.69 billion (AU$32.2 billion).
Fidelity’s fund racked in over US$20 million (AU$29.7 million) more than ARK 21Shares Bitcoin ETF, the fund with Friday’s second largest net inflows, which saw US$97.6 million (AU$145 million) in net inflows.
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Interestingly, IBIT saw zero net flows on Friday and negative flows on Thursday. Overall, it was an interesting week; Monday saw US$235.2 million (AU$349.4 million) in net inflows for all funds, although Tuesday to Thursday the funds had a cumulative net outflow of US$140.3 million (AU$208.4 million).
As mentioned, Friday was a strong finish to the week, with US$253.6 million (AU$376.75 million) in net inflows. Also notable, the Friday inflows were the third-strongest net inflows, occurring on a day when IBIT recorded zero net inflows.
Other Funds Still in Limbo as SEC Continues Hostile Stance
Meanwhile, XRP and Solana are awaiting a decision by the US Securities and Exchange Commission (SEC) on whether they will see their own funds approved soon.
Analysts at Kaiko recently predicted that the chances for an XRP fund are slim, mainly due to the ongoing legal battle between Ripple and the SEC.
This comes after SEC Commissioner Uyeda criticised his agency for a disastrous approach to the crypto industry which does more harm than good.
Related: Ripple Launches ‘Bank-Grade’ Crypto Custody, Targeting $16 Trillion Tokenisation Market
The other submission yet to be decided on is the Solana fund application. The approval prospects for a Solana fund may diminish if Kamala Harris wins the upcoming presidential election, but could improve if Donald Trump is re-elected, according to observers.
Nevertheless, VanEck’s Matthew Sigel, said recently the firm still believes that SOL is a commodity, “much like BTC and ETH”.
Only time will tell where the journey for ETFs other than BTC and ETH goes, but before those two had been approved many didn’t think their chances were too high either.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
