US Bitcoin ETFs recorded a net inflow of over $1.85 billion this week, with an additional $470 million on Thursday alone, reflecting strong investor interest.
US Bitcoin Spot ETF dominated by BlackRock
BlackRock’s Bitcoin Spot ETF, IBIT, continues to dominate the inflows. On Thursday, the fund received $309 million in net inflows, bringing its weekly total to over $1.07 billion. These figures confirm IBIT as one of the undisputed leaders in the Bitcoin ETF market, with performance that rivals its previous records set in March.
Among other notable Bitcoin ETFs, ARKB from Ark and 21Shares recorded over $100 million in inflows on Thursday. Grayscale’s GBTC attracted nearly $46 million, while Fidelity reported inflows of $11.69 million through its FBTC ETF. Franklin Templeton also contributed to positive flows with nearly $4 million added to its own fund. However, the other seven Bitcoin ETFs on the market reported no significant activity on Thursday.
Despite trading volumes slightly lower than the previous day, with $1.47 billion exchanged compared to $1.58 billion on Wednesday, cumulative flows since the launch of the 12 Bitcoin ETFs in January now exceed $20.66 billion.
Favorable economic conditions driving interest in Bitcoin
The upward trend of Bitcoin ETFs does not seem to be solely driven by internal factors within the cryptocurrency market. Favorable macroeconomic conditions play a crucial role in crypto investments, particularly the central banks’ interest rate cuts, prompting investors to turn to alternative assets such as Bitcoin.
Eric Balchunas, Senior Analyst at Bloomberg, described reaching $20 billion in cumulative flows as a particularly challenging milestone in the ETF universe.
In perspective, it took gold-backed ETFs about five years to reach the same figure.
Ethereum ETFs continue their recent progress
In addition to Bitcoin, Ethereum ETFs have also seen significant positive inflows on Thursday, with net inflows of $48.41 million, their highest daily performance since September 27. Fidelity, with its FETH fund, led the way with $31.12 million in inflows, followed by BlackRock, which recorded $23.56 million for its ETHA ETF.
Grayscale, Bitwise, Invesco, and 21Shares also contributed to these positive results with net inflows into their respective funds. However, Grayscale’s first ETF, ETHE, was the only notable exception with net outflows of $15.74 million.
The total trading volume for Ethereum ETFs reached $126.7 million, a modest figure compared to Bitcoin but significant in a context where these products had recently seen massive net outflows. Since their launch, the ETH ETFs have accumulated net outflows of $481.90 million, a significant improvement compared to the $686.68 million in outflows recorded at the end of September.
Cryptocurrencies continue their ascent
In the crypto market, Bitcoin has gained 1% in 24 hours and nearly 11% over the week, while ETH has slightly increased by 0.3%, trading at $2,630.
With these massive inflows into Bitcoin and Ether ETFs, institutional investors seem to be continuing to strengthen their position in the crypto market, thus consolidating the role of these assets in global finance.
