Investors demonstrated their continued enthusiasm for U.S.-listed Bitcoin exchange-traded funds (ETFs) on Monday, despite recent fluctuations in the cryptocurrency market. A total of $561.8 million flowed into 11 Bitcoin ETFs, marking the largest single-day inflow since January 14, according to data from Farside Investors.
BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s FBTC were the standout performers, attracting inflows of $142 million and $153.3 million, respectively. This robust buying activity occurred even as Bitcoin’s price plummeted to nine-month lows over the weekend, raising concerns of tumultuous price action across global markets. Contrary to these apprehensions, broader market conditions showed signs of stabilization.
The influx of capital ended a nearly ten-day streak of outflows as investors withdrew millions in response to Bitcoin’s decline from approximately $98,000 to below $75,000. This pattern highlights a notable divergence in market sentiment: while spot Bitcoin remains about 40% lower than its all-time high recorded in October, Bitcoin ETFs boast approximately 1.3 million BTC in assets under management, only about 5% shy of their peak of 1.37 million BTC during the same period, according to checkonchain data.
Despite the ongoing volatility, the average cost basis across U.S. Bitcoin ETFs now stands at around $84,099, whereas spot Bitcoin trades close to $78,000. Historically, Bitcoin prices have dipped below ETF cost bases, particularly in the latter half of 2024, presenting a key test for buyer conviction in these funds. Should investors choose to withdraw their investments, the resulting redemptions could compound bearish pressures in the market.
