Spot bitcoin ETFs saw net inflows of $790 million even as the price of bitcoin tumbled 7% in June.
Previously, the funds experienced heavy outflows when the underlying cryptocurrency declined sharply, for example in April.
The idea that the rapid growth in assets for the spot bitcoin ETFs was a result of the herd chasing “number go up” price action received a setback in June.
Data from Bloomberg Intelligence shows the spot funds saw net inflows of $790 million even as the price of bitcoin (BTC) tumbled 7%. Leading the way was what’s now the largest of the spot ETFs, BlackRock’s iShares Bitcoin Trust (IBIT), where inflows topped $1 billion, offsetting by itself what continue to be sizable outflows from the high-fee Grayscale Bitcoin Trust (GBTC).
The action stands in contrast to that of April, when the spot funds as a group saw large outflows as bitcoin’s price declined 15% that month.
“Boomers are much better holders than some make them out to be,” wrote Bloomberg Intelligence senior ETF analyst Eric Balchunas, possibly taking aim at well-followed analyst James Bianco, who has continually tried to make the case that it’s weak-handed hot money that’s been behind the massive asset gathering of the spot ETFs.
Part of the positive inflow streak in June could also come from enthusiasm tied to the possibility of a spot ether ETF, which regulators and potential issuers have visibly been working on getting approved. While the arrival of a rival spot crypto ETF could pull money from the bitcoin funds, it might also be a positive in that it signals regulators are finally embracing the industry as part of the financial system.
Ether ETF issuers have been asked to re-submit an important filing before July 8, according to reports, which spurred hopes that the ETFs will likely hit the market this month.
