Investors poured money into the US-listed bitcoin ETFs on Monday, proving that Wall Street still loves the cryptocurrency despite the recent price turmoil.
The 11 ETFs registered a combined net inflow of $561.8 million, the biggest single-day buying since Jan. 14, according to data source Farside Investors.
BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s FBTC led the buying, posting inflows of $142 million and $153.3 million, respectively, pointing to sustained demand even as price momentum weakened. Bitcoin fell to a nine-month low over the weekend, spooking markets to anticipate erratic price action across global markets on Monday. However, contrary to these fears, the markets stabilized somewhat.
The renewed inflows end a nearly ten-day streak of outflows that has seen investors withdraw millions as bitcoin fell from around $98,000 to below $75,000.
There is still a notable divergence. Spot bitcoin is about 40% below its October peak, yet pot ETFs have about 1.3 million BTC in assets under management, only about 5% below their October peak of 1.37 million BTC, according to checkonchain data.
Still underwater
While the average cost basis across US bitcoin ETFs now stands at approximately $84,099, spot bitcoin trades near $78,000.
Bitcoin has traded below the ETF’s cost bases before, notably in the second half of 2024, making this an important test of ETF buyers’ conviction. Should they capitulate, the resulting redemptions could contribute to bearish pressure on the market.
