Bitcoin funds see nearly $1B in inflows as investors flock to sector

Investors are plowing money into spot bitcoin funds after a momentary lull, coinciding with the price of the world's largest digital asset close to its record.

By the numbers: Nearly $890 million flowed into spot bitcoin exchange-traded funds (ETFs), with Fidelity and iShares funds receiving the largest share of that pot, according to preliminary data from Farside Investors.

Why it matters: Bitcoin is currently trading above $71,000, creeping toward its all-time high. It suggests retail interest in the sector hasn't abated despite the volatility of the last few weeks.

Context: The rush into the asset class appeared to peak in March, when more than $1 billion in fresh money flowed into the January-launched group in a single day.

• Yet early data suggests there's latent demand, or perhaps investors are eyeing a new record.

Our thought bubble: Investors have a tendency to chase performance.

Of note: Since the January launch of spot bitcoin ETFs, traditional asset managers have flexed on crypto native ones.

• BlackRock's iShares Bitcoin Trust (IBIT) just last week surpassed Grayscale's Bitcoin Trust ETF (GBTC) in assets, and is now the largest of the pack with $20.5 billion.
• Grayscale and Fidelity fill out the Top 3 issuers.

The big picture: This is the Year of Bitcoin, and while spot ether ETFs are making their way through the regulatory process, some issuers are focused on building out their bitcoin business, while others get ready for a second set of ETF-wrapped digital assets.