Bitcoin ETFs Pull in $1.1B in 3 Days
U.S. spot Bitcoin ETFs attracted a massive $1.1 billion in net inflows over just three days, marking their strongest weekly performance since mid-January. The surge coincides with Coinbase inching toward becoming a full-service digital brokerage by offering stocks and ETFs alongside crypto.
This recent surge marks a significant reversal after five consecutive weeks of net outflows that saw a total of $3.8 billion withdrawn from the funds. The renewed interest signals a potential return of institutional demand in the U.S. market. BlackRock's iShares Bitcoin Trust (IBIT) was the primary beneficiary of the new capital, attracting approximately $652 million, which accounts for more than half of the total inflows over the three-day period. In a noteworthy shift, Grayscale's Bitcoin Trust (GBTC), which had previously experienced significant redemptions, recorded its largest single-day inflow since its conversion to an ETF. The influx of capital into ETFs coincided with a key market indicator, the Coinbase Premium Index, turning positive after being negative for 40 straight days. This index measures the price difference for Bitcoin on Coinbase compared to global exchanges, with a positive reading often interpreted as renewed buying pressure from U.S. institutions. Coinbase has now fully launched 24/5 commission-free stock and ETF trading for all its U.S. users, allowing them to manage traditional and crypto assets in a single account. To facilitate this, the company has partnered with Yahoo Finance for asset discovery and Apex Fintech Solutions for clearing and custody services. Since their approval, U.S. spot Bitcoin ETFs have fundamentally altered the market structure, attracting a cumulative total of roughly $70 billion. Total Bitcoin holdings across these U.S. spot ETFs have now reached 1.29 million BTC. This integration with traditional finance has led some analysts to re-evaluate Bitcoin's price. One quantitative model, which analyzes the relationship between cumulative ETF inflows and price, suggests a potential "flow-implied" value for Bitcoin significantly higher than its current trading level.
