In a promising development for cryptocurrency investment, U.S. spot Bitcoin exchange-traded funds (ETFs) recorded their fifth consecutive day of net inflows, totaling an impressive $105.84 million on Wednesday. This surge is primarily driven by BlackRock’s iShares Bitcoin Trust (IBIT), the largest Bitcoin ETF by net assets, which alone reported a staggering $184.38 million in inflows. This robust performance highlights a growing interest in Bitcoin among institutional investors, as the total net inflows for these ETFs since their inception in January have now reached a remarkable $17.94 billion.
Despite the positive trend in Bitcoin inflows, not all funds shared in this success. Ark Invest and 21Shares’ ARKB faced significant net outflows of $47.41 million, while Fidelity’s FBTC reported $33.19 million in outflows. Grayscale’s GBTC and other funds remained stagnant with zero flows for the day, reflecting a contrasting sentiment in the market. Collectively, the 12 spot Bitcoin funds had a daily trading volume of $795.88 million, a decline from Tuesday’s $1.11 billion, signaling some cautious trading activity amid the fluctuating market conditions.
Ether ETFs Join The Inflow Trend
Notably, spot Ether ETFs are also experiencing a resurgence, with total net inflows amounting to $43.23 million on the same day. Grayscale’s Ethereum Mini Trust led the charge with $26.63 million, while BlackRock’s ETHA and Fidelity’s FETH contributed $9.38 million and $6.45 million, respectively. This marks a significant turnaround for Ether ETFs, which had been struggling with total net outflows of $580.94 million since their debut in July.
However, despite the positive momentum, the trading volume for Ether ETFs remained relatively modest at $124.18 million. This indicates that while inflows are promising, overall market participation may still be lacking, raising questions about sustained investor interest.
SEC Decision Postponed
In a related development, the U.S. Securities and Exchange Commission (SEC) has delayed its decision on listing and trading options for BlackRock, Bitwise, and Grayscale’s Ethereum ETFs. Initially anticipated this Thursday, the SEC’s ruling has now been rescheduled for November, leaving investors awaiting critical insights that could impact market dynamics.
Also Read: BlackRock Insights – 60% Of Bitcoin’s Value Driven By Unique Factors, Not Volatility
Market Reactions
In the broader market, Bitcoin‘s price dipped slightly by 0.99% in the last 24 hours, settling at $63,565, while Ether also saw a decrease of 0.58%, priced at $2,610. These minor fluctuations come as investors digest the latest inflow data against the backdrop of regulatory developments.
The recent inflow activity in spot Bitcoin and Ether ETFs signals a renewed interest in cryptocurrencies, particularly among institutional investors. While Bitcoin continues to dominate with substantial inflows, Ether’s gradual recovery reflects potential growth in the sector. As the SEC’s decisions loom and market conditions evolve, all eyes will be on how these trends unfold in the coming weeks. The landscape remains dynamic, and the future of cryptocurrency ETFs appears bright, albeit with some challenges ahead.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
