Is the Bitcoin exchange-traded fund (ETF) fever coming back? It seems like that. After weeks of stalled outflows, investors are pouring cash into commodities again.
Yesterday, all funds had positive inflows and were in the green. A total of $217 million flowed into the newly approved products on Monday, according to data from investment management firm Pharside Investors.
The same goes for Friday's trading, when investors put a total of $378 million into the fund.
The change in investor sentiment comes after the Bitcoin ETF suffered its worst day ever last week, with more than $500 million leaving the fund.
There are several headwinds plaguing Bitcoin ETFs. Investors are concerned that low U.S. inflation could delay the Federal Reserve from cutting interest rates this year. Investors are also wary of approaching risky assets like Bitcoin, as the Bitcoin hype has waned and geopolitical factors such as wars in the Middle East have played a role.
But on Friday, news broke that April's unemployment rate was higher than expected, potentially prompting the Fed to cut interest rates.
Since then, inflows into the product have been all positive for the first time since its launch. Previously, aggregated data has always been a burden as Grayscale Bitcoin Trust (GBTC) has been experiencing outflows on a daily basis, although there have been days when most funds have been inflows.
But yesterday was the second day since investors put money into the fund and converted it into an ETF.
The U.S. Securities and Exchange Commission finally approved 11 Bitcoin ETFs in January after more than a decade of denials. A new category of ETFs has been a huge success, siphoning billions of dollars as retail investors enter the crypto space.
Bitcoin's price hit a new all-time high of $73,747 in March, but has struggled since then, falling below $57,000 last week.
However, the largest digital asset by market capitalization is currently on the rise, trading at nearly $64,000 per coin, according to CoinGecko.
Edited by Stacey Elliott.
