As covered by Cointelegraph: On October 11, Bitcoin spot exchange-traded funds (ETFs) in the United States experienced a remarkable turnaround, registering $253.6 million in net inflows, concluding a three-day period of outflows. This marks the third-largest inflow day on record, excluding contributions from BlackRock’s iShares Bitcoin Trust (IBIT).
Flows for US Bitcoin spot ETFs on October 11 (green). Source: Farside Investors
The Fidelity Wise Origin Bitcoin Fund led the surge with $117.1 million in inflows, followed by the ARK 21Shares Bitcoin ETF accumulating $97.6 million, according to Farside Investors. The Bitwise Bitcoin ETF recorded its highest inflow in 11 trading sessions, totaling $38.8 million, while the Invesco Galaxy and VanEck Bitcoin ETFs also witnessed positive inflows.
Despite BlackRock’s IBIT and several other funds (including Franklin Templeton, Valkyrie, and WisdomTree) reporting “0” inflows that day, the overall inflows sufficiently offset the $140 million outflow noted between the 8th and October 10th. This influx in inflow followed a 7.3% rise in Bitcoin, boosting the price to $63,360 before retracting to $62,530, based on CoinGecko data.
BlackRock retains its dominant position in the Bitcoin ETF spot market, showcasing total net inflows of $21.7 billion, while Fidelity is nearing the $10 billion landmark, just $15 million away. Concurrently, ARK 21Shares and Bitwise are the only other Bitcoin ETF providers with net inflows surpassing $2 billion. In total, spot Bitcoin ETFs attracted $18.9 billion in net inflows.
Challenges for Ethereum ETFs
In contrast, spot Ether ETFs are facing challenges. On October 11, seven out of nine US-based Ethereum spot ETFs reported no inflows, marking the third time this occurred in the past five trading days. Ether ETFs experienced a slight net outflow of $0.1 million, with inflows coming solely from Fidelity’s Ethereum Fund, while the Grayscale Ethereum Trust encountered an outflow of $8.7 million.
The diminished interest in Ether spot ETFs compared to Bitcoin could stem from market timing concerns and a lack of understanding surrounding Ethereum’s technical advancements, as indicated by Bitstamp Americas CEO Bobby Zagotta. Investors appear to be taking a cautious stance due to uncertainties related to elections, regulatory matters, and various sociopolitical factors.
Bitcoin ETFs: A Resilient Revival Amidst Market Volatility
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day noted to date, signaling a distinct indication of renewed investor enthusiasm in the cryptocurrency arena.
Leading the effort was the Fidelity Wise Origin Bitcoin Fund, which not only captured attention with a remarkable $117.1 million influx but also established a tone of positivity for the introduction of Bitcoin ETFs. Following closely was the ARK 21Shares Bitcoin ETF with $97.6 million, demonstrating that institutional confidence in the revival of Bitcoin remains robust. Undoubtedly, this surge of investment can be seen as a bullish sentiment developing amongst both retail and institutional investors, eager to take advantage of Bitcoin’s market dynamics.
Interestingly, this spike was not solely supported by the actions of significant entities like BlackRock’s iShares Bitcoin Trust (IBIT), a central factor frequently dominating prior discussions relating to Bitcoin ETF inflows. This latest data alleviates some of the overt dependence experienced in preceding months, highlighting a broader rejuvenation fueled by various funds. Notably, the Bitwise Bitcoin ETF recorded its most substantial inflow in 11 trading sessions, further evidence of the shifting tides.
Moreover, the favorable performance of ETFs such as the Invesco Galaxy and VanEck Bitcoin ETFs, which also noted positive inflows, illustrates a more varied investment environment. Investors seem increasingly inclined to explore different funds instead of concentrating all investments in singular heavyweights. This diversification in options could signify growing confidence in the overall cryptocurrency landscape, where the capacity of various funds to endure individual market pressures is becoming increasingly crucial.
However, as we revel in the warmth of these inflows, it’s essential to uphold a stance of cautious optimism. The preceding days of outflows act as a reminder of the inherent volatility that defines the crypto domain. The influx of capital may serve as a potent signal, but the sentiments within that same market remain vulnerable to swift changes due to regulatory developments, macroeconomic dynamics, or broader investor attitudes towards risk assets.
As investors and analysts alike gaze ahead, all are acutely aware that while this resurgence of inflows is promising, the endurance of such momentum relies not merely on economic indicators but also on the evolving narrative surrounding Bitcoin and cryptocurrency as a whole. Will this signal a rallying cry for a more stable future in Bitcoin investment, or will it merely represent a fleeting blip in a continuously turbulent saga? Only time will reveal the answers, but for now, the rebound in Bitcoin ETFs presents a beacon of hope amidst the unpredictability of digital currencies.
