After a lackluster start to October, the market for spot Bitcoin (BTC) ETFs is showing signs of revival. On October 7th, notable inflows of $235.2 million were reported across various ETFs, marking two consecutive days of positive capital movement, according to Farside Investors. This resurgence in interest could signal a potential turnaround in the Bitcoin ETF market, which had been sluggish earlier in the month.
Fidelity And BlackRock Lead The Charge
At the forefront of this recovery was Fidelity’s FBTC ETF, which saw an impressive $103.7 million in inflows on the 7th of October, making it the top performer in terms of capital attracted. Hot on its heels was BlackRock’s IBIT, the largest spot Bitcoin ETF by assets, which rebounded strongly with $97.9 million in inflows after a lull on October 4th.
Other notable contributors to the market’s positive momentum included Bitwise’s BITB, which gained $13.1 million, and the Ark and 21Shares’ ARKB, which attracted $12.6 million. VanEck’s HODL saw inflows of $5.4 million, while Invesco’s BTCO added $2.5 million. Despite this overall positive trend, Grayscale’s GBTC and six other ETFs did not record any new inflows during this period.
The cumulative trading volume across all 12 ETFs reached $1.22 billion on October 7th, reflecting a steady increase from the $1.19 billion seen on the 4th of October and $1.13 billion on the 3rd. This growing trading volume suggests renewed investor interest in Bitcoin ETFs, despite the cryptocurrency’s recent price fluctuations.
Analysts’ Take: A Promising Future for Bitcoin ETFs
Bloomberg’s senior ETF analyst, Eric Balchunas, had already predicted this upward movement in Bitcoin ETFs. In a recent analysis, he highlighted both Fidelity’s FBTC and BlackRock’s IBIT as two standout ETFs of the decade. According to Balchunas, these ETFs are now considered “studs” in the market, with each amassing over $10 billion in Assets Under Management (AUM).
Balchunas’ prediction is proving accurate as the renewed inflows and growing AUM suggest strong investor confidence in these Bitcoin ETFs, even amid broader market uncertainties.
Bitcoin’s Price Faces Bearish Pressure
While Bitcoin ETFs are gaining momentum, the underlying asset itself has been facing bearish pressure. As of October 7th, Bitcoin was trading at approximately $62,497, marking a 0.48% drop in the past 24 hours and falling short of its recent peak of $66,000. The decline comes despite the legal backdrop of the U.S. Supreme Court’s decision to reject an appeal concerning the ownership of 69,370 Bitcoin seized from the Silk Road marketplace.
Ethereum ETFs Lag Behind
In contrast to the bullish signs for Bitcoin ETFs, U.S. spot Ethereum (ETH) ETFs have shown weaker performance. Following inflows of $7.39 million on October 4th, Ethereum ETFs saw a pause in activity on October 7th, with trading volumes dropping from $148.01 million on October 4th to $118.43 million. Ethereum’s price also followed a downward trend, dipping by 1.35% to $2,436, reflecting a broader cooldown in the cryptocurrency market.
Also Read: MicroStrategy (MSTR) Surges 68% To $198 – Michael Saylor’s Bold Bitcoin Defense Amid $16B BTC Hoard
The Road Ahead
Despite the slow start to October, the recent inflows into Bitcoin ETFs signal growing investor interest and confidence in the crypto sector’s future. While Bitcoin’s price remains volatile, the ETF market is demonstrating resilience, driven by strong institutional inflows. As analysts like Balchunas remain optimistic about the long-term potential of Bitcoin ETFs, investors will be closely watching whether these funds continue their upward trajectory in the coming weeks.
For now, the contrasting performances of Bitcoin and Ethereum ETFs highlight the ever-shifting dynamics of the crypto landscape.
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.
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