Bitcoin exchange-traded funds (ETFs) in the US have been attracting a lot of investor money lately, even though the price of Bitcoin itself has been struggling. This is a bit unusual, as ETF performance usually follows Bitcoin’s price closely.
A Billion-Dollar Week for Bitcoin ETFs
Last week was a good one for US Bitcoin ETFs, with a total inflow of over $1 billion. This is nine days in a row of positive cash flow! BlackRock’s iShares Bitcoin Trust (IBIT) was the star performer, adding a huge $46.91 million on Friday alone. While other ETFs like Fidelity’s FBTC saw some outflows, the overall trend is clearly positive after a couple of weeks of losses.
Bitcoin Price Takes a Tumble
Despite the ETF success, Bitcoin’s price hasn’t been doing so well. It recently dipped below $101,500, and is down almost 4% over the past week. This shows that investors are seeing value in Bitcoin ETFs even when the price of Bitcoin itself is falling. This might be due to various factors, including the perceived stability and regulation that ETFs offer compared to directly holding Bitcoin.
