Bitcoin exchange-traded funds (ETFs) continue to see inflows in the US
Spot Bitcoin exchange-traded funds (ETFs) in the U.S. saw $1.8 billion in inflows last week, marking the 18th consecutive day of record demand. Trading volumes in these Bitcoin ETFs increased 55% week-over-week to $12.8 billion. Last week, Bitcoin ETFs acquired about 25,700 BTC, which is almost the entire amount of newly mined Bitcoin during that period, thus tightening the market.
Inflows exceed total volume of May
The latest inflows surpassed May's total, fueled by regulatory approvals in the UK, Australia and Thailand, as well as favorable political developments. With assets under management now exceeding $70 billion, Bitcoin ETFs are legitimizing Bitcoin as an institutional asset (financial instrument used by institutional investors). They have now attracted 5% of the total Bitcoin supply.
Investors see Bitcoin as a hedge against inflation and uncertainty
The increasing inflows reflect investors' view of Bitcoin as a hedge against inflation and economic uncertainty, especially as interest rate cuts take place in Canada and Europe. Bitcoin ETFs, which launched just a few months ago, have grown rapidly and could continue to attract significant institutional investment if the current momentum continues.
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