Bitcoin ETFs Record $600 Million in Daily Inflows on December 12
Bitcoin spot exchange-traded funds (ETFs) in the United States experienced nearly $600 million in daily inflows on December 12, marking the 11th consecutive day of inflows since the start of December.
This surge is attributed to Bitcoin’s recent rise past the $100,000 psychological level, signaling a critical barrier for potential gains. Institutional investors are acquiring Bitcoin ETFs to position themselves for expected price increases.
Massive Inflows Signal Institutional Confidence
The $600 million inflow on Friday increased cumulative total net inflows to $35.17 billion. The total Bitcoin (BTC) holdings by asset issuers are valued at $112.55 billion, reflecting a 5.68% growth.
Data from blockchain ETF tracker SoSoValue indicates that BlackRock’s iShares Bitcoin Trust (IBIT) led with approximately $432 million in inflows for the day, rebounding from no activity on December 11.
This surge has elevated BlackRock’s total Bitcoin market share to 3%. BlackRock noted that a Bitcoin allocation of up to 2% is “reasonable” for multi-asset portfolios, equating a 1%-2% Bitcoin weighting to the risk profile of holding major tech stocks.
These developments coincide with a trend of corporate institutions adopting Bitcoin as a strategic reserve against market volatility. For instance, Indian tech firm Jetking Infotrain became the first publicly traded company in India to adopt Bitcoin as a corporate reserve, acquiring 12 BTC valued at around $1.2 million on December 9.
Broader Market Participation
On December 12, BlackRock’s IBIT was not alone in attracting inflows. Institutional investors purchased $30.54 million worth of the Fidelity Wise Origin Bitcoin Fund (FBTC), raising its cumulative net inflows to $12.25 billion.
Other Bitcoin ETFs, including ARK 21Shares Bitcoin ETF (ARKB) and Bitwise Bitcoin ETF (BITB), recorded inflows of $61.45 million and $2.65 million respectively. However, Grayscale’s Bitcoin Trust (GBTC) faced nearly $48.40 million in outflows, contrasting with its Grayscale Bitcoin Mini Trust (BTC), which attracted $110.76 million in inflows.
Additionally, US-listed Bitcoin ETFs such as Invesco Galaxy Bitcoin ETF (BTCO), Franklin Templeton Digital Holdings Trust (EZBC), and Hashdex Bitcoin ETF (DEFI) reported no investor activity on December 12.