Inflows into Bitcoin ETFs, especially BlackRock’s IBIT, are stabilising Bitcoin’s price as institutional confidence rises. Investors in these funds tend to be long-term holders. The Bitcoin ETF market is robust, with total assets around $93.8 billion and significant inflows contributing to market strength, whereas Grayscale has seen substantial outflows.
Eric Balchunas highlights that the stability in Bitcoin’s price is significantly attributed to robust inflows into Bitcoin exchange-traded funds (ETFs), predominantly led by BlackRock’s iShares Bitcoin Trust (IBIT). Institutional confidence is growing, with long-term ETF investors contributing to this price steadiness, indicating a shift towards viewing Bitcoin as a long-term asset rather than merely a speculative investment.
Recent trends noted by Balchunas suggest that investors in Bitcoin ETFs are less likely to engage in selling. He terms these investors as ‘stronger hands’, who may hold onto their Bitcoin during market fluctuations. Institutional investors and advocates, including Michael Saylor, are acquiring Bitcoin from distressed holders affected by events like the FTX collapse and regulatory actions.
The Bitcoin ETF market has gained substantial traction, currently comprising approximately $93.8 billion in total assets, with IBIT commanding $48 billion. IBIT’s inflows this year account for about $2.39 billion, marking it as a significant player within the sector. Despite slight weekly declines, the fund has seen encouraging monthly inflows, reflecting investor confidence.
Several other Bitcoin ETFs, including the Bitwise Bitcoin ETF (BITC), are also attracting attention, with year-to-date inflows reaching $328 million and monthly inflows recently peaking at $69.59 million. Smaller funds like the VanEck Bitcoin Trust (HODL) and the WisdomTree Bitcoin Fund (BTCW) are witnessing steady, albeit modest, inflow trends. In contrast, the Grayscale Bitcoin Trust has faced considerable outflows, suffering a decline of $1.28 billion this year and $620.89 million over the past month.
