The recent surge in popularity for spot Bitcoin exchange-traded funds (ETFs) in the United States has taken a momentary pause. After a streak of positive inflows lasting seven days, these funds experienced a reversal on Tuesday, registering net outflows of $79.01 million.
The primary catalyst behind this negative shift was Ark and 21Shares’ ARKB, which witnessed a significant outflow of $134.7 million. However, BlackRock’s IBIT, the largest spot Bitcoin ETF by net assets, managed to attract $43 million in net inflows. Fidelity’s FBTC and VanEck’s HODL also contributed to the positive side, recording inflows of $8.8 million and $3.8 million respectively. The remaining eight funds, including Grayscale’s GBTC, didn’t see any net flows on the day.
The last time U.S. spot Bitcoin ETFs concluded a trading day with net negative flows was October 10th, when they shed a combined $81.1 million. However, the cumulative net inflows for these 12 ETFs still stand at a respectable $21.15 billion as of Tuesday. Additionally, the total daily trading volume for these funds witnessed a decline to $1.4 billion compared to Monday’s $1.76 billion.
Institutional Interest Grows
The short-term pullback in spot Bitcoin ETF inflows should be viewed in the context of a broader trend. Over the past month, these vehicles have experienced a remarkable resurgence in popularity. Data compiled by Ki Young Ju, co-founder of on-chain analytics platform CryptoQuant, reveals that institutional ownership through ETFs has reached approximately 20% as of October 18th.
Ju noted that spot ETFs have facilitated the entry of 1,179 institutions into Bitcoin’s cap table this year alone. This statistic highlights the significant role these instruments have played in opening doors for institutional investors.
Furthermore, European investors have also contributed to the positive inflows, allocating over $100 million to U.S. spot Bitcoin ETFs year-to-date.
Also Read: BlackRock’s Bitcoin ETF Draws $329M In Inflows As BTC Dips 3%—Leads $23B Market
Spot Ether ETFs Remain Relatively Stable
In contrast to their spot Bitcoin counterparts, spot Ether ETFs in the U.S. witnessed modest net inflows of $11.94 million on Tuesday. This positive movement can be solely attributed to BlackRock’s ETHA, as the remaining eight Ether funds didn’t register any net flows. The total trading volume for these spot Ether ETFs stood at $118.4 million yesterday, compared to $163.18 million on Monday. It’s important to note that since their launch, these funds have experienced cumulative net outflows of $488.85 million.
While Bitcoin’s price dipped slightly by 0.78% in the past 24 hours, currently trading at $66540, the overall outlook for spot Bitcoin ETFs remains positive. The short-term pullback might indicate a period of consolidation, but the long-term trend suggests continued institutional adoption through these vehicles.
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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