Bitcoin ETFs Just Had Their Best Day in Months as Crypto Market Rebounds
TL;DR
Bitcoin ETFs saw their highest inflows since October, with BlackRock's fund leading at $372.5 million. Bitcoin's price dipped slightly but remains up weekly, and Morgan Stanley filed to launch new crypto ETFs.
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Bitcoin ETFs in the U.S. marked their best day worth of inflows since early October on Monday as the funds pulled in $697.2 million.
BlackRock's iShares Bitcoin Trust was already on a roll, pulling in $287.4 worth of inflows on Friday—already a three-month peak. But yesterday, the fund outdid itself by accounting for more than half of the total daily inflows, adding $372.5 million.
The Fidelity Wise Origin Bitcoin Fund was the next most popular with investors on Monday, seeing $191.2 worth of shares created yesterday, according to a Bitcoin ETF tracker maintained by London-based investment management firm Farside Investors.
Meanwhile, Bitcoin has retraced slightly to $92,080 at the time of writing, showing a 2.3% drop compared to the same time Monday, according to crypto price aggregator CoinGecko. But it's still 4.4% higher than it was this time last week.
Users on Myriad, a prediction market platform owned by Decrypt parent company Dastan, estimate that there's a 74% chance that Bitcoin closes the gap to $100,000 sooner than it can drop back to $69,000. That percentage has jumped considerably since users were almost evenly split in mid-December.
Bitcoin sagged below $90,000 in December, dashing hopes that investors would see a Santa rally for Christmas. But it has started rebounding in the new year, climbing above $94,000 on Monday. And as inflows have poured into Bitcoin ETFs, the funds now custody $122.86 billion worth of BTC, according to crypto analytics platform CoinGlass.
Earlier Monday, Wall Street titan Morgan Stanley signaled it's aiming to give the existing Bitcoin and Solana ETFs a run for their money. The bank filed S-1 registration forms with the SEC to launch the Morgan Stanley Bitcoin Trust and the Morgan Stanley Solana Trust.
The initial filing describes the funds' fee structures, but doesn't list them, and leaves out custodians and crypto on- and off-ramp partners. A spokesperson for the bank told Decrypt in an email that the firm cannot yet provide details about whether the bank will work with crypto-native or bank-affiliated custodians.