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- Spot Bitcoin ETFs net $477M inflow, Ethereum adds $141M.
- Trading volumes remain high, signaling growing institutional interest.
- Gold decline may push investors toward crypto as an alternative hedge.
Spot Bitcoin and Ethereum exchange-traded funds (ETFs) in the U.S. rebounded on Tuesday, signaling renewed institutional interest after days of market turbulence. Bitcoin ETFs reported a total net inflow of $477.2 million, while Ethereum funds added $141.6 million.
Bitcoin ETFs Lead the Recovery
Nine out of twelve spot Bitcoin funds recorded net inflows, with BlackRock’s IBIT taking the lead at $210.9 million. ARK & 21Shares’ ARKB followed with $162.8 million, and Fidelity’s FBTC contributed $34.15 million. Overall, trading volumes remained elevated, totaling $7.41 billion on Tuesday, consistent with October’s range of $5 billion to $9.78 billion—well above September’s $2–4 billion range.
Nick Ruck, director at LVRG Research, described the inflows as a sign of stabilizing institutional sentiment. “The return to net positive flows suggests renewed confidence in crypto as a portfolio diversifier amid economic uncertainties,” he said.
Ethereum ETFs Also Gain Momentum
Spot Ethereum ETFs mirrored Bitcoin’s recovery, with Fidelity’s FETH leading inflows at $59 million. Additional contributions came from BlackRock, Grayscale, and VanEck, collectively pushing total inflows to $141.6 million. Analysts suggest that Ethereum’s continued adoption in DeFi and smart contract applications is helping attract institutional interest.
Market Drivers and Outlook
A broader shift in investor strategy is also influencing crypto demand. Gold prices fell sharply by 5.9% on Tuesday, marking the steepest single-day drop since 2020. According to Ruck, declining gold demand is encouraging traditional investors to explore alternative assets like Bitcoin for hedging and yield opportunities. The combination of elevated ETF inflows and rising trading volumes points to stronger liquidity and growing institutional engagement.
Also Read: Binance $20B Sell-Off Sparks Bitcoin Crash and Market Fear
Bitcoin traded slightly higher at $108,450, while Ether was down 0.19% at $3,869, reflecting a market in relative equilibrium despite recent macroeconomic tensions between the U.S. and China.
After a period of outflows exceeding $1 billion, U.S. spot Bitcoin and Ethereum ETFs are demonstrating resilience. The strong inflows and robust trading volumes signal that institutional investors are increasingly viewing digital assets as viable hedges and growth opportunities, suggesting a potential stabilization in the crypto market.
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.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
