Benzinga - by Murtuza Merchant, Benzinga Staff Writer.
Bitcoin spot exchange-traded funds (ETFs) continued their hot streak on May 21, recording a total net inflow of $306 million.
What Happened: This marks the seventh consecutive day of positive inflows for the asset class, highlighting sustained investor interest in Bitcoin through these regulated vehicles, according to data from SoSo Value.
Leading the charge was BlackRock’s iShares Bitcoin Trust (NASDAQ:IBIT), which saw a single-day inflow of $290 million.
This represents the largest daily inflow for IBIT since April and signifies strong investor confidence in the product.
Grayscale’s Bitcoin Trust (OTC:GBTC), the first publicly traded Bitcoin investment vehicle, experienced a net outflow of $0.00 on the same day. Fidelity Wise Origin Bitcoin Fund (BATS:FBTC) saw a $26 million inflow.
The total net asset value of all Bitcoin (CRYPTO: BTC) spot ETFs reached a staggering $58.910 billion as of May 21, reflecting the growing popularity of these investment products.
This surge in inflows coincides with a recent uptick in Bitcoin prices, which have climbed above $70,000 for the first time in a month.
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Industry Experts See Long-Term Potential
The ongoing demand for Bitcoin spot ETFs is further fueled by optimistic outlooks from industry leaders.
Joe Lubin, co-founder of Ethereum (CRYPTO: ETH) and Consensys, predicts a “floodgate” of demand for cryptocurrencies, particularly Ether (Ethereum’s native token), due to the potential approval of spot ETFs.
This, he believes, could create a supply crunch and lead to a “profound watershed moment” for the entire crypto industry.
Regulatory Landscape Remains Unclear
However, some analysts raise concerns about the sudden shift in the SEC’s stance on spot ETFs.
According to The Block, the regulatory body’s recent change of heart, from complete rejection to potential approval, appears hasty and potentially politically motivated.
This lack of transparency could create uncertainty for investors in the long run.
For a deeper dive into the future of digital assets and the implications of regulatory developments, attend Benzinga’s Future of Digital Assets event on Nov. 19.
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