Bitcoin exchange-traded fund (ETF) fever is back? It looks like it. After a sluggish few weeks of outflows, investors are back chucking cash at the products.
Yesterday, every single fund was in the green with positive inflows. A total of $217 million entered the newly approved products on Monday, according to data from investment management company Farside Investors.
The same goes for the trading day before that—on Friday—when investors plugged a collective total of $378 million into the funds.
The change in investor sentiment comes after the Bitcoin ETFs had their worst day on record last week, when more than half a billion dollars left the funds.
There have been a few headwinds plaguing the Bitcoin ETFs. Investors have worried that the Federal Reserve would be slow to cut interest rates this year due to sticky U.S. inflation. There’s also been dying BTC hype and geopolitical factors such as war in the Middle East making investors cautious about going near an asset as risky as Bitcoin.
But on Friday, news dropped that the unemployment rate for April was higher than expected—which could push the Fed to cut interest rates.
Since then, inflows for products have for the first time since their launch all been positive. Previously, there were days when most of the funds received inflows, but the collective data was always weighed down by Grayscale’s Bitcoin Trust (GBTC) experiencing outflows every day.
But yesterday was the second day since its conversion into an ETF that investors put money into the fund.
The U.S. Securities and Exchange Commission finally authorized 11 Bitcoin ETFs in January after more than a decade of denials. The new ETF category has been enormously successful—sucking in billions of dollars—as ordinary investors enter the crypto space.
Bitcoin's price hit a new all-time high of $73,747 in March, but has since struggled, dropping below $57,000 last week.
The biggest digital asset by market cap is up now, though, and trading at nearly $64,000 per coin, CoinGecko shows.
Edited by Stacy Elliott.