Spot Bitcoin exchange-traded funds (ETFs) in the United States have witnessed an impressive surge, achieving the highest inflow in four months. A substantial total of $556 million has been invested across 12 funds, coinciding with Bitcoin’s rebound to a two-week high of $66,500. This remarkable growth in Bitcoin ETFs reflects growing investor confidence and interest in the cryptocurrency market.
Record-Breaking Inflows in Leading Funds
The standout single-day inflow of $239 million was channeled through Farside (FBTC), marking its most significant influx since June. Other notable performers include Bitwise (BITB) with $100 million and BlackRock (IBIT), which successfully attracted new investors, accumulating $79.51 million. These substantial figures highlight the increasing traction and appeal of Bitcoin ETFs in the financial market.
Increased Activity Across Multiple Funds
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Several funds reported inflows as the market continued its upward trajectory. ARK Invest and 21Shares (ARKB) collectively saw their shares climb to nearly $70 million, while Grayscale’s Bitcoin Trust (GBTC) registered its first inflow since September, amounting to a little over $37 million, despite grappling with significant cumulative outflows of $20 billion since its inception. This positive trend indicates a resurgence in investor interest and confidence in Bitcoin-related investment products.
Smaller funds also reported inflows, including HODL, EZBC, BTCO, Grayscale BTC Mini Trust, and Valkyrie, with total inflows surpassing $29 million. This heightened activity has consequently driven up the trading volumes of these 12 Bitcoin ETFs to an impressive $2.61 billion. Analysts suggest that these recent inflows, totaling $19.36 billion over the past 10 months, will further propel the growth of such funds. Interestingly, Bitcoin ETFs have surpassed gold-based products, garnering $1.5 billion in net inflows this year, underscoring the shifting investor preferences towards digital assets.
The current market capitalization of Bitcoin stands at $1.29 trillion, illustrating its substantial presence and influence in the cryptocurrency domain.
Ethereum ETFs Lag Behind Bitcoin
While Bitcoin ETFs have surged to unprecedented levels, Ethereum ETFs have seen comparatively modest growth. Net inflows into Ethereum ETFs reached $17 million, led by BlackRock (ETHA) with $14 million. Other notable players include Fidelity (FETH), Invesco (QETH), and 21Shares (CETH), which received inflows ranging from $393,690 to $1.30 million. Despite the increase in trading volumes to $210 million from $143.54 million the previous day, Ethereum ETFs have experienced net outflows of $542 million since their launch in July. This disparity highlights the varying investor sentiment and performance between Bitcoin and Ethereum ETFs.
The overall cryptocurrency market is showing signs of recovery from previous losses, with Bitcoin trading at $65,268. Ethereum has also demonstrated resilience, increasing by nearly 3% to reach the $2,594 level by the end of the day. As Nate Geraci, President of ETF Store, aptly noted, this has been a “monster day” for spot Bitcoin ETFs, as the crypto investment product continues to gain mass appeal, surpassing traditional and safer assets like gold.
