U.S. Spot Bitcoin ETFs Surge Amid Positive Market Trends

In a significant financial development, U.S. spot Bitcoin ETFs have experienced a notable surge, recording a two-week high inflow of $303 million as Bitcoin’s price soared past $66,000.

According to data from Farside Investors, all U.S. spot Bitcoin ETFs, with the exception of BlackRock’s iShares Bitcoin Trust (IBIT), reported inflows on May 15th. Notably, IBIT maintained a neutral position with neither inflows nor outflows for a third consecutive day. Leading the influx was Fidelity’s FBTC, which saw substantial inflows amounting to $131.3 million, while Grayscale’s GBTC registered its first inflows in a week, drawing $27 million.

The influx into ETFs coincided with a positive shift in Bitcoin’s market value, spurred by a recent report from the U.S. Bureau of Labor Statistics indicating a slight easing in inflation for April. This economic backdrop has heightened investor interest and confidence in cryptocurrency investments.

Furthermore, the latest quarterly 13F filings with the U.S. Securities and Exchange Commission (SEC) unveiled significant investments by institutional investors into spot Bitcoin ETFs. Among the major investors is Millennium Management, a $64 billion hedge fund, which holds nearly $2 billion across several Bitcoin ETFs including IBIT, FBTC, GBTC, Ark Invest’s ARKB, and Bitwise’s BITB. Other notable investments include Elliot Capital’s $12 million stake in IBIT and Apollo Management Holdings’ $53 million in ARKB.

A pioneering move was made by the State of Wisconsin’s Investment Board, marking one of the first U.S. public pension funds to allocate a portion of its holdings to spot Bitcoin ETFs. The Board’s 13F filing disclosed a substantial $163 million investment in Bitcoin ETFs, split across one million shares in GBTC ($63.7 million) and 2.5 million shares in IBIT ($99.2 million).

A 13F filing is a mandatory quarterly report for large hedge funds and investment managers, detailing their asset allocations and submitted to the SEC 45 days post-quarter.

The growing institutional interest was echoed earlier this month by Fidelity Digital Assets vice president Manuel Nordeste at an event in London, where he noted that pension funds are beginning discussions about integrating cryptocurrencies into their investment portfolios. This trend was further underscored by a legislative proposal in Arizona aiming to include Bitcoin ETFs in the state’s retirement plans, emphasizing the need to monitor developments in digital asset ETFs closely.