Bitcoin ETFs inflow grew 211% month over month in June

Bitcoin ETFs inflow grew 211% month over month in June
Image by Eivind Pedersen from Pixabay
  • Bitcoin ETFs inflow spikes strongly in June 2021
  • Lower BTC price seeems to attract more investors seeing exposure
  • This queit accumulation has no real impact on the spot BTC price

BELGIUM (CoinChapter.com) — There are always exciting developments in the cryptocurrency space, which people tend to overlook. However, despite the bearish market momentum, Bitcoin ETFs keep accumulating BTC like there is no tomorrow. A 211% increase from May to June 2021 shows the demand for this crypto asset is still heating up. 

Also read: Tesla’s Bitcoin exposure prompts investors to shun TSLA as rival Nasdaq stocks rally.

Of the many ways to gain exposure to BTC, Bitcoin ETFs are a compelling and seemingly popular option.

These exchange-traded funds can help investors of all levels achieve exposure to the world’s leading cryptocurrency. Although investors do not own the BTC in question, they still reap the rewards of its volatile price trends. Unfortunately, until a few years ago, there was no Bitcoin ETF to speak of. Thankfully, things have improved for the better.

Per ByteTree, the overall demand for BTC by Bitcoin ETFs appears to rise strongly. From May to June of this year, there is a 211% increase in holdings. A somewhat surprising trend given the bearish pressure Bitcoin is under in recent weeks. Even so, overall demand for Bitcoin keeps rising among people who invest in these ETFs, bar some exceptions. 

Bitcoin flows into exchange-traded products. Source: ByteTree
Bitcoin flows into exchange-traded products. Source: ByteTree

Notable buyers include 3Q CoinShares Bitcoin ETF, Purpose Bitcoin ETF – CAD, USD, and USD hedged – WisdomTree Bitcoin ETP, 21Shares, Galaxy Bitcoin – both ETFs -, VanEck Vectors Bitcoin ETN, and Coinshares Physical Bitcoin. Smaller purchases were made by Iconic Funds Physical Bitcoin and Bitcoin Tracker One. A very bullish signal, as 5.607 BTC went to all Bitcoin Exchange-Traded Product providers. Even with Ninepoint and Bitcoin Trader Euro liquidating AUM, that trend remains in place.

Although this inflow is not as high as April 2021 – at 14.057 across all Bitcoin ETFs – it remains a remarkable development. May 2021 was a tranquil month with a positive flow of 1,802 BTC. During that month, Ninepoint, Bitcoin Tracker Euro, and Bitcoin Tracker One liquidated over 5.400 BTC combined, yet the overall flow did not turn hostile. A sign of how resilient Bitcoin is and why the demand for exposure continues to pick up globally.  

Bearish Trend

Whereas Bitcoin ETFs continue to accumulate BTC, the overall market price shows little positive momentum. Bitcoin’s bearish trend remains in effect since mid-April 2021. It is no surprise these ETF providers note a higher demand for Bitcoin as this downtrend continues, though.

Not that long ago, the Bitcoin price spiked to above $60,000 for the first time. Today, one can gain exposure to this asset at nearly half that value. It is a no-brainer to many people. However, that plan will only work if and when the Bitcoin price recovers. It can happen at any moment for this unpredictable market, yet the current outlook is not too optimistic. 

Bitcoin ETFs, Bitcoin ETFs inflow grew 211% month over month in June
BTC/USDT Price chart by TradingView.com

Thanks to these Bitcoin ETFs acquiring more BTC, there will eventually be less liquidity to go around. Although ETF providers can liquidate AUM if the need arises, it is a vote of confidence to see them accumulating during these trying times. Whether that will be enough to trigger a future supply shock is difficult to predict, but all small bits will add up over time. 

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