Bitcoin ETFs Shine Despite BTC Price Dip: $1B Inflow

Despite Bitcoin's recent price struggles, US-based spot Bitcoin exchange-traded funds (ETFs) have witnessed a remarkable nine-day inflow streak, exceeding $1 billion in the past week. This surge in investor interest is a significant development, especially considering the overall market uncertainty. While the traditional correlation between Bitcoin's price and ETF performance isn't strictly observed in this instance, the ETFs have shown resilience. BlackRock's iShares Bitcoin Trust (IBIT) led the charge, adding a substantial $46.91 million on Friday alone, highlighting its dominant position in the market. In contrast, Fidelity Wise Origin Bitcoin Fund (FBTC) experienced a net outflow of $40.55 million on the same day. This inflow, however, is slightly lower than the previous week's $1.39 billion but significantly higher than the preceding two weeks' net outflows. This positive trend contrasts sharply with Bitcoin's price performance. The cryptocurrency has fallen below the $101,500 level, marking a nearly 2% decline in 24 hours and a 4% drop over the past seven days. This divergence suggests that investors might be viewing Bitcoin ETFs as a less volatile way to gain exposure to the cryptocurrency market, potentially hedging against the inherent price volatility of Bitcoin itself. The sustained inflow into Bitcoin ETFs underscores a growing confidence among some investors despite the broader market uncertainty and Bitcoin's recent price downturn. The divergence between ETF performance and Bitcoin's price action presents a fascinating case study in investor sentiment and risk appetite within the evolving cryptocurrency landscape. The success of BlackRock's iShares Bitcoin Trust further solidifies its leading role in the Bitcoin ETF market.

(Source: https://www.newsbtc.com/news/bitcoin/bitcoin-etfs-hit-9-days-inflow-streak-despite-price/)