Bitcoin ETFs see continued inflows as BTC climbs back above $100K

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As a seasoned analyst with over two decades of experience in the financial markets, I find the recent trends in Bitcoin and Ethereum exchange-traded funds (ETFs) intriguing. The consistent inflows into Bitcoin ETFs, particularly Fidelity’s FBTC, are reminiscent of the ’90s dot-com boom, where investors were eager to jump on the bandwagon of the next big thing.

On December 11th, U.S.-based Bitcoin exchange-traded funds experienced a tenth straight day of investments totaling $223.03 million, as Bitcoin surpassed $100,000 once more.

Based on SoSoValue’s findings, it was observed that a large portion of investments made on December 11 were directed towards Fidelity’s FBTC, accumulating $121.9 million in fresh investments. This marked the tenth consecutive day of inflows for FBTC. Additionally, ARK and 21Shares’ ARKB fund, as well as Grayscale’s GBTC, also saw substantial contributions, with inflows amounting to $52.67 million and $20.13 million respectively on that day.

Furthermore, it’s worth noting that Grayscale Bitcoin Mini Trust, BITB from Biwise, and HODL funds by VanEck experienced more moderate contributions totaling approximately $15.74 million, $12.16 million, and $2.87 million each. In contrast, Valkyrie’s BRRR fund reported unusual withdrawals amounting to $2.44 million for the day.

On December 11th, Bitcoin ETFs such as BlackRock’s IBIT, which has garnered investments totaling $35.06 billion since its debut, showed no strong stance or movement.

On December 11th, the overall trading volume for Bitcoin investment products was approximately $3.94 billion, slightly lower than the $3.97 billion registered the day before. At the time of the report, a total of $34.58 billion had flowed into the 12 Bitcoin Exchange Traded Funds (ETFs).

The influx occurred at the same time as Bitcoin’s recent surge, where the digital currency went beyond $100,000 and peaked around $102,000. This growth was prompted by recent U.S. inflation figures boosting anticipation for a possible interest rate reduction by the Federal Reserve.

At press time, Bitcoin (BTC) was trading at $100,769 per coin, up 3.3% over the past 24 hours.

Ether ETF inflows slow down

On December 11th, there was a noticeable decrease in the inflow of funds into Ethereum ETFs, with only $102.03 million being added compared to the $305.74 million recorded the day before, marking a substantial 66% decline.

Based on information from SoSoValue, it’s clear that the lion’s share of investments flowed into BlackRock’s ETHA fund, amounting to approximately $74.16 million. The Grayscale Ethereum Mini Trust came in second with $13.38 million in investments. Other notable contributors were Biwise’s ETHW, VanEck’s ETHV, and Franklin Templeton’s EZET, which received inflows of around $8.23 million, $5.6 million, and $2.91 million respectively.

On December 11th, Grayscale’s ETHE fund experienced withdrawals amounting to $2.26 million, adding up to a total of $3.5 billion in withdrawals since its inception.

Cumulative net inflows for Ethereum ETFs stood at $1.97 billion at the time of reporting.

Yesterday saw Ethereum (ETH) and other cryptocurrencies climbing in value. Currently, one Ethereum coin trades at $3,916, marking a 7.2% increase. The overall crypto market also witnessed a positive trend, with its total market cap rising by 3.7%, now standing at an impressive $3.81 trillion.

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2024-12-12 10:22