Bitcoin ETF Inflow Spikes 168%, Hits $35B Milestone

Bitcoin ETF inflow has increased  by 168% on December 12 and crossing a historic $35 billion in total cumulative net inflows. This unprecedented surge highlights growing institutional confidence in Bitcoin as a major asset class.

According to SoSoValue, inflows into Bitcoin exchange-traded funds (ETFs) reached $597.57 million on December 12, dwarfing the $223.03 million seen just a day earlier. This marks the 11th consecutive day of positive net inflows, propelling cumulative inflows to a remarkable $35.17 billion a significant milestone for Bitcoin ETFs.

The majority of the Bitcoin ETF inflow was funneled into BlackRock’s IBIT fund, which recorded $431.6 million in inflows after reporting no activity the previous day. As the world’s largest asset manager, BlackRock now boasts a cumulative net flow of $35.49 billion for its IBIT fund since its inception.

BlackRock’s consistent performance in the Bitcoin ETF market reflects the growing institutional appetite for digital assets, remarked Julia Meyers, a financial analyst at Digital Investment Trends.

Despite the positive momentum across most Bitcoin ETFs, Grayscale’s flagship GBTC fund reported $48.4 million in outflows. This marks the fund as the only outlier in an otherwise bullish day for Bitcoin ETF inflows.

Outflows from GBTC suggest a realignment of investment priorities, with investors likely reallocating capital to other high-performing ETFs, stated Richard Zhao, Chief Strategist at CryptoFund Insights.

Bitcoin ETFs collectively saw $3.15 billion in trading volume on December 12, a slight dip from the $3.97 billion recorded the day before. Despite the decrease in trading volume, the surge in Bitcoin ETF inflow demonstrates sustained interest from both institutional and retail investors.

Meanwhile, Bitcoin’s spot price dipped slightly, trading at $99,985 per coin, reflecting a 0.7% decline.

Bitcoin ETF Inflow Experience Parallel Growth

While Bitcoin ETF inflow dominated headlines, Ethereum ETFs also saw significant growth, recording $273.67 million in inflows on the same day—a 168% increase from $102.03 million reported the day prior.

BlackRock’s ETHA fund attracted $202.31 million in inflows, followed by Grayscale’s Ethereum Mini Trust, which pulled in $73.22 million. Fidelity’s FETH and 21Shares rounded out the inflow chart with $19.42 million and $1.55 million, respectively.

However, Grayscale’s ETHE fund faced $22.83 million in outflows, raising its cumulative outflows since inception to $3.52 billion.

The dramatic increase in Bitcoin ETF inflows can be attributed to growing institutional adoption by major players like BlackRock and Fidelity, improved market sentiment driven by positive regulatory developments and macroeconomic stability, and the appeal of ETFs as a regulated, secure avenue for portfolio diversification without the need for direct cryptocurrency ownership.

The recent surge in Bitcoin ETF inflows signals a pivotal moment for the crypto market, with institutional acceptance nearing mainstream adoption. Experts predict this momentum could continue, particularly if Bitcoin spot prices stabilize above key psychological thresholds.

Breaking the $35 billion inflow milestone is not just a numeric achievement, it underscores a fundamental shift in how traditional finance perceives Bitcoin as a legitimate investment vehicle, said George Brighton, an economist specializing in blockchain finance.

Despite some outflows in specific funds like Grayscale GBTC, the overall trajectory remains upward, solidifying Bitcoin’s place as a core component of diversified investment portfolios.

The record-breaking Bitcoin ETF inflow of 168% and a total surpassing $35 billion underscores the growing institutional trust and investor enthusiasm for Bitcoin. As more funds like BlackRock’s IBIT dominate the market, the future for Bitcoin ETFs looks increasingly promising.

With institutional giants like BlackRock and Fidelity continuing to spearhead the movement, Bitcoin ETFs are poised to reshape the global investment landscape.

For the crypto industry, milestones like this reaffirm Bitcoin’s staying power and its potential to evolve into a cornerstone asset in traditional finance. Get more from The Bit Gazette