US-based spot Bitcoin exchange-traded funds (ETFs) have recorded unprecedented back-to-back inflows of over $1 billion, coinciding with Bitcoin reaching fresh all-time highs this week. It marks the first instance since their launch in January 2024 that two consecutive days have seen such significant ten-digit inflows.
Record-breaking inflows across consecutive days
According to data from Farside Investors, the 11 spot Bitcoin ETFs in the US saw $1.03 billion in inflows on Friday, following an even higher $1.17 billion on Thursday. This milestone is notable not only for its scale but also because these are only the sixth and seventh days ever that daily inflows have exceeded $1 billion since the ETF products launched.
Prior to this week, the last time such a high level of inflow was recorded was on 17 January 2024, when ETFs brought in $1.07 billion. The $1.17 billion registered on Thursday now stands as the second-highest single-day inflow, behind only the $1.37 billion observed on 7 November 2024, which followed Donald Trump’s victory in the US presidential election.
Supply-demand gap widens
The massive inflows underline a widening gap between ETF demand and Bitcoin supply. Bitwise Invest’s chief investment officer, Matt Hougan, highlighted that while around 450 Bitcoins were mined on Thursday, spot Bitcoin ETFs purchased approximately 10,000 coins on the same day.
This imbalance was echoed by Bitcoin infrastructure firm Jan3, which pointed out that ETF demand on Wednesday was 22 times greater than the daily mined supply. Jan3 CEO Samson Mow noted, “This demand is not sustainable at these price levels,” hinting at potential market corrections ahead.
Total inflows hit $2.72 billion during all-time high week
Across the trading week, spot Bitcoin ETFs saw total inflows of $2.72 billion. The rush of investment activity came as Bitcoin surged to a new peak of $112,000 on Wednesday and climbed further to $118,780 by Friday, according to CoinMarketCap data.
BlackRock’s IBIT breaks records
The price rally has also fuelled a sharp increase in assets under management (AUM) for major ETFs. BlackRock’s spot Bitcoin ETF, known by its ticker IBIT, surpassed $80 billion in AUM on Thursday, becoming the fastest ETF to ever reach that mark in just 374 days.
ETF analyst Eric Balchunas noted that BlackRock is now earning more annual revenue from IBIT than from its flagship iShares Core S&P 500 ETF. He also mentioned that the total AUM for all US spot Bitcoin ETFs has crossed the $140 billion milestone for the first time. However, Balchunas added that much of this growth came from Bitcoin’s price appreciation rather than just capital inflows.
Investor confidence strengthens ETF momentum
The latest developments suggest growing investor confidence in Bitcoin as a long-term asset, especially through regulated financial products like ETFs. With over $2.7 billion poured in during a single week, these investment vehicles continue to play a pivotal role in driving both market momentum and mainstream adoption of Bitcoin.
