Bitcoin ETFs log 4-day inflow streak with $479m, Ether ETFs face outflows

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As a seasoned researcher with a keen eye for market trends and a soft spot for cryptocurrencies, I find myself captivated by the current surge in inflows into Bitcoin ETFs in the U.S. It’s fascinating to witness the rapid growth of these funds, with BlackRock’s IBIT leading the charge. The prospect of these ETFs reaching the 1 million BTC milestone is not just significant, it’s downright electrifying!

On October 28th, Bitcoin exchange-traded funds (ETFs) in the U.S. experienced an inflow of $479.35 million, marking their fourth consecutive day with net inflows. Conversely, Ether ETFs noticed a deceleration in net outflows during the same period.

Based on information from SoSoValue, it’s been noted that most of the investments have come from BlackRock’s IBIT, the Bitcoin ETF with the largest assets under management. This ETF received approximately $315.2 million, marking its 10th consecutive day of inflows. Since its debut, the fund has accumulated a total of $24.3 billion in net inflows over time.

The impressive showing by IBIT was bolstered by investments into other Bitcoin ETFs such as ARK 21Shares’ ARKB and Fidelity’s FBTC, which received approximately $59.78 million and $44.12 million each. Smaller yet significant contributions were also noticed from Biwise’s BITB and the Grayscale Bitcoin Mini Trust, with inflows of around $38.67 million and $21.59 million respectively.

On October 28th, none of the Bitcoin ETFs, including Grayscale’s leading product GBTC, experienced withdrawals. Yet, GBTC has recorded an overall net outflow of approximately $20.11 billion since its inception.

Nearing the 1 million BTC milestone

Due to these large deposits, the quantity of Bitcoin owned by U.S. exchange-traded fund providers for spot Bitcoin has significantly increased to approximately 976,893 Bitcoins, which is equivalent to over $69.3 billion and accounts for close to 5% of Bitcoin’s total market value of around $1.34 trillion.

Based on the present trend, it seems likely that the total Bitcoin holdings might surpass 1 million by the end of this week. At the current prices, approximately $1.64 billion more in investments is needed to cover the 23,107 Bitcoin shortfall to achieve this significant milestone.

In order to hit that goal by the close of the current week, Exchange-Traded Funds (ETFs) should maintain a daily average investment of approximately $328 million.

In October, the influx of investors towards these financial products surged to more than $3.5 billion, accompanied by a 5% increase in Bitcoin’s price which peaked at a four-month high of $71,500 before settling at $70,980. The enthusiasm among investors seems to be driven by the anticipation surrounding next week’s U.S. election, potential changes in interest rates by the Federal Reserve, and Russia’s planned lifting of its ban on Bitcoin mining in November.

Ether ETFs see slowed outflows

On October 28th, there was a significant slowdown in withdrawals from Ether ETFs in the U.S., with just $1.14 million being withdrawn, contrasting the $19.16 million that left the funds the day prior.

As a researcher examining the daily transactions, I found that Grayscale’s ETHE was predominantly affected by outflows, with approximately $8.44 million being withdrawn. However, this trend was somewhat counteracted by influxes into Fidelity’s FETH and BlackRock’s ETHA, which respectively received $5.02 million and $2.28 million. The other spot Ether ETFs did not report any net inflows or outflows on that particular day.

The reduction in the flow of Ether ETFs is consistent with an overall market uptrend, as the price of Ethereum increased by 3.6%, reaching $2,611.

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2024-10-29 10:57