The $50B Horizon: Why US Spot Bitcoin ETFs Remain Attractive 

As Bitcoin climbs back above $109,000 after a volatile June, US spot Bitcoin exchange-traded funds are making a rebound. According to Farside Investors' data, total net inflows into ETFs on July 3 surpassed $600 million, with BlackRock’s IBIT and Fidelity’s FBTC accounting for the largest shares, at approximately $224 million and $237 million, respectively. 

Total Net Inflows Into U.S. Spot Bitcoin ETFs Close to $50B

The rebound in early July highlights renewed institutional demand for Bitcoin exposure through regulated ETF vehicles. This marks a shift from the last two weeks of June, when several trading sessions saw notable outflows. For instance, on June 17, net flows dropped to just $216.5 million, with Fidelity (-$208.5M) and ARK (-$191.4M) leading the redemptions.

Despite these mid-cycle pullbacks, investor behavior appeared to shift by the end of the month, signaling renewed bullish sentiment, easing of profit-taking pressures, or institutional accumulation following market dips.

As of now, total net inflows into U.S. spot Bitcoin ETFs stand at $49.6 billion, led by:

• BlackRock’s IBIT: $52.6B
• Fidelity’s FBTC: $12.2B
• Bitwise’s BITB and ARKB: ~$2B–$2.7B each

On the other hand, Grayscale’s GBTC continues to record cumulative net outflows of $23.3 billion, reflecting the ongoing migration of capital from legacy products toward lower-fee ETF options.

BlackRock’s Bitcoin ETF Generates More Revenue Than Its S&P 500 Fund 

BlackRock's Bitcoin ETF, launched in January 2024, has already outpaced one of the firm’s most established products, the iShares Core S&P 500 ETF (IVV)—in terms of revenue generation. While IVV manages significantly more assets, around $450 billion, the iShares Bitcoin Trust (IBIT) has proven more lucrative, generating approximately $150 million in revenue year-to-date, compared to IVV’s $100 million.

Since its launch, IBIT has attracted $52 billion in net inflows and now holds more than 55% of all Bitcoin ETF assets, according to Bloomberg.

Its edge in profitability over IVV comes down to demand and fees. IBIT charges a 0.25% fee (temporarily discounted to 0.12% on the first $5 billion), while IVV charges just 0.03%. With strong demand for Bitcoin exposure through ETFs, IBIT’s higher fee has translated into more revenue in a shorter timeframe.

IBIT is already among the 20 most-traded ETFs. Following regulatory approval, Bitcoin ETFs have drawn strong interest from hedge funds, pension funds, and banks.

Will Bitcoin Set New Highs in July?  

According to a Polymarket poll, a majority of users expect Bitcoin’s price to rise this month. About 56% of respondents believe Bitcoin will reach $115,000, while 36% of a separate group predict it will hit $100,000. Additionally, 28% expect the coin to trade as high as $120,000.

Big drivers for market sentiment are expected to be geopolitical uncertainty and policy developments in the US. These factors could either boost investor confidence or cause volatility depending on how events unfold.