In a major turnaround for the U.S. spot Bitcoin exchange-traded funds (ETFs), Oct. 11 saw a net inflow of $253.6 million, breaking a streak of three consecutive days of outflows. This surge followed a 7.3% rally in Bitcoin prices, bringing the cryptocurrency to a local high of $63,360 before it slightly dipped to $62,530, according to CoinGecko data.
Fidelity Leads the Pack
The Fidelity Wise Origin Bitcoin Fund led all ETFs with a substantial inflow of $117.1 million, contributing nearly half of the day’s total inflows. Not far behind, the ARK 21Shares Bitcoin ETF saw an inflow of $97.6 million, according to Farside Investors’ data.
Other significant contributions came from the Bitwise Bitcoin ETF, which attracted $38.8 million, marking its largest inflow in 11 trading days. Invesco Galaxy and VanEck Bitcoin ETFs also saw notable inflows, further boosting the overall momentum in the spot Bitcoin ETF market.
However, BlackRock’s iShares Bitcoin Trust (IBIT), which has traditionally dominated inflows, recorded zero net flow on the day. Other ETFs from Franklin Templeton, Valkyrie, and WisdomTree also saw no movement.
Grayscale Bitcoin Trust Continues to Bleed
Despite the optimistic inflow for Bitcoin ETFs, the Grayscale Bitcoin Trust (GBTC) continued to struggle, recording an outflow of $22.1 million. This trend has persisted over the past few weeks, with Grayscale seeing a massive $20 billion in outflows.
Nonetheless, the $253.6 million inflow more than offset the $140 million that exited Bitcoin ETFs between Oct. 8 and 10, signaling renewed investor confidence, especially with Bitcoin’s recent price surge.
BlackRock Still Dominates Despite Flat Day
Despite its zero inflow on Oct. 11, BlackRock remains the leader among U.S. spot Bitcoin ETF issuers, boasting a total of $21.7 billion in net inflows. Fidelity, which is close to crossing the $10 billion milestone, trails behind but continues to narrow the gap. ARK 21Shares and Bitwise are the only other issuers with inflows surpassing $2 billion.
This was the third-largest combined inflow day where BlackRock’s IBIT did not contribute, raising questions about potential shifts in investor focus within the ETF space.
Ethereum ETFs Struggle to Gain Momentum
While Bitcoin ETFs enjoyed a solid day, Ethereum ETFs continue to face challenges. Seven out of the nine U.S.-based spot Ether ETFs recorded zero inflows on Oct. 11, the third such occurrence in five trading days.
The combined net outflow for Ethereum ETFs amounted to just $0.1 million, with all inflows coming from Fidelity’s Ethereum Fund. Meanwhile, the Grayscale Ethereum Trust bled $8.7 million, underscoring the lack of demand for Ether-based products.
Market analysts attribute this sluggish performance to poor timing, with Ethereum ETFs launching amidst broader market uncertainties. Bobby Zagotta, CEO of Bitstamp Americas, suggests that investors may be in “wait-and-see” mode due to regulatory uncertainties and other sociopolitical factors.
Others argue that Wall Street may not fully grasp Ethereum’s complex technical roadmap, making it harder for investors to recognize its long-term value compared to Bitcoin.
Also Read: Over $1.83B In Bitcoin Floods Exchanges As 63,000 BTC Moves Amid Market Dip
As BTC ETFs continue to see robust inflows and price rallies, Ethereum ETFs face significant headwinds. With over $253.6 million pouring into Bitcoin ETFs in a single day, it’s clear that investor sentiment is warming up to Bitcoin once again. However, Ethereum ETFs still have a long road ahead to catch up, with market uncertainty and a complex value proposition leaving investors cautious.
The coming weeks will reveal whether this trend continues, especially as more regulatory clarity emerges and market conditions evolve.
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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