• Bitcoin ETFs have witnessed substantial growth, with a $700 million inflow in the past week, indicating strong investor confidence.
• BlackRock and Fidelity are at the forefront of this surge, capturing significant market share and influencing the digital asset landscape.

In the latest Digital Asset Fund Flows Weekly Report, a notable surge in investment was observed with inflows reaching $708 million in the past week. This uptick has reduced the outflows from Grayscale, contributing to a robust year-to-date inflow of $1.6 billion, and escalating the total global assets under management to $53 billion.

CoinShares data highlights a remarkable trend in the US ETF market, with new ETFs averaging $1.9 billion in inflows over the past four weeks, cumulatively amassing $7.7 billion since their inception. See below.

Leading the Charge: BlackRock and Fidelity’s Impact

Prominent ETFs, particularly those managed by financial giants BlackRock and Fidelity, reported weekly inflows of $884 million and $674 million, respectively. In contrast, the Grayscale Bitcoin Trust (GBTC) saw a significant decrease in outflows, dropping from $2.2 billion the previous week to $927 million.

This shift underscores a pivotal moment for new Bitcoin ETFs, which have now accrued $7.7 billion in assets, surpassing the $6 billion in outflows from traditional funds.

Further insights were provided by an analyst’s tweet, indicating a notable decrease in Grayscale Bitcoin Holdings from 619,000 BTC in January 2024 to 478,000 BTC. This shift has largely benefited BlackRock and Fidelity, with BlackRock’s Bitcoin holdings now valued at $3.2 billion.

This aggressive acquisition strategy by BlackRock suggests a shrinking availability of Bitcoin for other investors. Moreover, James Seyffart of Bloomberg provided an update on the Bitcoin ETF Cointucky Derby, highlighting a $80 million inflow on Friday.

Fidelity’s Wise Origin Bitcoin Fund (FBTC) and BlackRock’s iShares Bitcoin Trust (IBIT) have experienced significant inflows, with FBTC’s total flows at $2,600.1 million and IBIT at $3,059.9 million. In contrast, GBTC saw a decline until Thursday, with total flows over the last 16 days showing a negative $5,967.9 million.

As recently reported by CNF, Bitcoin market has demonstrated resilience, maintaining its value around $42,953, despite experiencing a 0.57% decrease in the last 24 hours and a 0.95% drop over the past week.