Crypto ETFs Witness Record Inflows: Bitcoin and Ethereum Funds Shine Bright
The cryptocurrency market has seen a surge in interest from US investors, particularly in spot Bitcoin and Ethereum ETFs. In the past trading week, more than $1 billion flowed into the 11 US-based Bitcoin ETFs, signaling a growing appetite for digital assets.
Bitcoin ETFs: A Billion-Dollar Inflow
The momentum for spot Bitcoin ETFs started to build last weekend after the US Federal Reserve announced a cut in interest rates. Despite a modest start on Monday with just $4.5 million in net inflows, investors ramped up their efforts throughout the week.
Tuesday and Wednesday saw substantial inflows of $136 million and $105.9 million, respectively. However, it was Thursday and Friday that stole the spotlight, with $365.7 million and $494.4 million pouring into the ETFs. This marked the most successful day for Bitcoin ETFs since early June.
Ark Invest’s ARKB emerged as the biggest beneficiary, receiving $113.8 million on Thursday and $203.1 million on Friday. Fidelity’s FBTC and BlackRock’s IBIT also saw significant inflows, further solidifying the positive trend in the market.
Overall, the net inflows for spot Bitcoin ETFs for the entire week totaled $1.1065 billion, making it the most successful week since mid-July. Despite a slight retracement in Bitcoin’s price, which peaked at $66,500 during the week, investor confidence remained high.
Ethereum ETFs Gain Traction
While spot Ethereum ETFs had struggled to attract attention since their launch in July, the past trading week showed signs of a potential shift in sentiment. After starting with significant outflows, investors changed course and poured $85.2 million into Ethereum ETFs throughout the week.
Thursday saw the highest inflow of $62.5 million, followed by $43.2 million on Wednesday and $58.7 million on Friday. Despite minor withdrawals on Thursday, the overall trend was positive, marking the second-best week for Ethereum ETFs since their introduction on US stock exchanges.
The record for the highest inflows still belongs to the period between August 5 and August 9, indicating a growing interest in Ethereum as a digital asset. As the market continues to evolve, it will be interesting to see how investors navigate the dynamic landscape of cryptocurrency ETFs.
In conclusion, the surge in inflows for both Bitcoin and Ethereum ETFs highlights the increasing interest in digital assets among US investors. As the market continues to mature and evolve, these ETFs serve as a gateway for traditional investors to access the world of cryptocurrencies. With record-breaking inflows and positive market sentiment, the future looks promising for crypto ETFs.
