US-Based Bitcoin ETFs Experience Volatility Yet Show Resilience
The landscape of US-based spot Bitcoin Exchange-Traded Funds (ETFs) recently exhibited a rollercoaster of financial movements. After an impressive streak, these crypto investment vehicles began the week on a downtrend, breaking their seven-day, $4.7 billion inflow record. On Monday, January 27, nearly $460 million in value was withdrawn, signaling a temporary halt in investor enthusiasm.
Bitcoin ETFs Witness Robust Recovery Amidst Market Uncertainty
Despite the initial setback, Bitcoin ETFs demonstrated remarkable resilience, concluding the week with substantial new capital inflows. This rebound highlights an increasing institutional demand, reflecting growing investor confidence in Bitcoin, even amidst a volatile market environment.
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Bitcoin ETFs Establish A New $1 Billion 4-Day Inflow Streak
Recent data unveils that the US-based spot Bitcoin ETF market experienced a net capital influx of $318 million on Friday, January 31. This event marked the fourth consecutive day of positive net inflows following the significant outflows earlier in the week.
Among the ETFs, BlackRock’s iShares Bitcoin Trust (IBIT) led the charge, achieving a remarkable net inflow of $363.83 million on Friday. This influx underscores a revitalization of interest in the trillion-dollar asset manager’s fund after recent slowdowns.
Following closely, the ARK 21Shares Bitcoin ETF (ARKB) recorded a daily net inflow of $35.5 million. The VanEck Bitcoin ETF (HODL) also contributed positively, with $5.76 million added to its coffers by the week’s end.
Conversely, the Bitwise Bitcoin ETF (BITB) faced withdrawals, witnessing $56.03 million in capital outflows. This fund has faced challenges in maintaining consistent positive performance since the start of the year, managing only seven days of inflows in January. Similarly, the Grayscale Bitcoin Trust (GBTC) saw outflows totaling $30.59 million.
Nonetheless, the $318 million achieved on a single day propelled the weekly performance of US-based Bitcoin ETFs to $556 million. Although this figure is lower than recent weekly performances, it marks the beginning of another positive inflow streak.
Ethereum ETFs Experience Positive Turnaround
Mirroring the Bitcoin ETFs, the US-based Ethereum ETF market recorded significant inflows as the week concluded. This marks a positive shift for Ethereum ETFs, which have faced headwinds in recent weeks.
The Ethereum ETFs ended the week with a net inflow of $27.78 million, despite the Grayscale Ethereum Trust (ETHE) encountering a substantial outflow of $31.92 million. Leading this positive change was BlackRock’s ETHE ETF, which registered a robust inflow of $57.27 million on Friday.
Additionally, the VanEck ETHV ETF reported an inflow of $2.43 million. However, despite these gains, the Ethereum ETFs were unable to avoid a weekly outflow totaling $45.5 million.
This dynamic performance across Bitcoin and Ethereum ETFs illustrates the evolving investment climate in the cryptocurrency market, showcasing both the challenges and opportunities present for investors.
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