Emerging Trends in the Cryptocurrency ETF Landscape
The approval of spot Bitcoin exchange-traded funds (ETFs) in the United States in early 2024 marked a significant milestone in the cryptocurrency market. This move set the stage for similar products, and by mid-year, Ethereum ETFs also made their debut. While Bitcoin ETFs had a robust start, Ethereum ETFs faced a more turbulent beginning. However, both have captured the attention of investors nationwide.
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Bitcoin ETFs: A Persistent Trend of Positive Inflows
Recent market data from SoSoValue reveals that spot Bitcoin ETFs in the U.S. recorded a substantial net inflow of $429 million on Friday, December 13. This achievement marked the 12th consecutive day of net capital inflow for these crypto assets.
Leading the charge, BlackRock’s iShares Bitcoin Trust (IBIT) accounted for a significant portion of Friday’s influx, amassing over $393 million. Fidelity’s FBTC followed with nearly $60 million, while Bitwise’s BITB saw a $33.2 million rise. Ark & 21Shares’ ARKB and VanEck’s HODL also contributed, with inflows of $28.41 million and $8.62 million, respectively.
Notably, Grayscale’s GBTC was the only fund to experience an outflow, with $105.76 million withdrawn. Nonetheless, the impressive $428 million single-day performance boosted the weekly total for Bitcoin ETFs to $2.17 billion.
At present, Bitcoin’s value hovers around $101,367, showing stability over the past 24 hours. According to CoinGecko, Bitcoin’s value has increased by approximately 2% in the last week.
Ethereum ETFs: Setting New Records in Capital Inflows
In parallel, U.S.-based spot Ethereum ETFs achieved a net influx of $23.6 million on the same day, marking their 15th consecutive day of positive inflows. BlackRock’s Ethereum Fund (ETHA) led this charge with a single-day inflow of $9.5069 million.
Among Ethereum ETFs, Grayscale’s ETHE and Fidelity’s FETH stood out, attracting $7.24 million and $6.86 million, respectively. While this daily performance was modest compared to the week’s peak of $854.85 million, it was sufficient to set a new weekly record for Ethereum ETFs.
The continuous capital inflow into the Ethereum ETF market underscores the growing demand for ETH, reflected in its price movements. Currently, Ethereum is valued at approximately $3,870, showing a slight decline of nearly 1% in the past 24 hours.
The evolving dynamics of Bitcoin and Ethereum ETFs illustrate the expanding interest and investment opportunities within the cryptocurrency realm. As these financial instruments continue to gain traction, they are poised to play a pivotal role in shaping the future of digital asset investment.
