As a seasoned crypto investor with a decade of experience under my belt, I’ve seen the market ebb and flow like the tides, and these recent developments have certainly piqued my interest. The surge in Bitcoin ETF inflows is nothing short of impressive, especially considering the geopolitical tensions that have been weighing on markets.
In the U.S., there was a notable increase in inflows for Bitcoin-focused exchange-traded funds, whereas Ethereum-centric ETFs experienced no movement at all.
Based on information from SoSoValue, Bitcoin ETFs holding the 12th position saw an influx of approximately $235.19 million on October 7, which is more than nine times higher compared to the inflow of around $25.59 million recorded during the previous trading day.
In a recent development, Fidelity’s FBTC was at the forefront with an inflow of approximately $103.68 million. This was closely followed by BlackRock’s IBIT, the largest Bitcoin spot ETF in terms of net assets, which recorded inflows worth around $97.88 million. Interestingly, IBIT had reported no inflows the day before, making its recent inflow noteworthy as it bounced back significantly.
In the past three days, BITB from Bitwise experienced a run of success, attracting approximately $13.09 million in new investments, while both Ark and 21Shares’ ARKB followed closely behind with about $12.63 million added to their funds.
Other Exchange-Traded Funds (ETFs) focused on Bitcoin also saw an increase in investments. Bitwise’s BITB recorded a flow of $13.09 million, marking its third consecutive day of net inflows. Ark and 21Shares’ ARKB weren’t far behind with a net inflow of $12.63 million, while VanEck’s HODL and Invesco’s BTCO experienced more moderate investments of $5.37 million and $2.53 million respectively.
Meanwhile, Grayscale’s GBTC and the remaining spot BTC ETFs recorded zero net flows on the day.
On October 7, the overall trading volume for the 12 Bitcoin ETFs increased substantially to reach approximately $1.22 billion, compared to the previous day’s figures. Since their launch, these funds have collectively garnered a net inflow of around $18.73 billion.
Political and economic factors drive sentiment
As a crypto investor, I witnessed an interesting turn of events yesterday. The influx of funds into Bitcoin (BTC) coincided with its price rebounding to $63,000, marking a 2% increase from the day prior. This surge in value came after a brief dip in market sentiment that was sparked by heightened geopolitical tensions, particularly the escalation between Iran and Israel. However, it seems the market has quickly regained its optimism.
As global uncertainties affected market performance, it appears that Bitcoin’s rebound is linked not only to the changing political climate within the United States but also to broader economic movements.
Lately, occurrences such as the gathering in Butler, Pennsylvania, with ex-President Donald Trump and Elon Musk in attendance, might have boosted investor enthusiasm. The backing that Musk gave to Trump’s election bid energized political advocates, an action some experts think influenced markets, leading to a favorable cycle for Bitcoin.
The combination of this recent surge (in the rally) along with surprising U.S. job statistics has significantly boosted investor trust in Bitcoin, as they evaluate how political, economic, and market factors intersect.
As a crypto investor, I noticed that despite the substantial inflows throughout the day, the price of Bitcoin didn’t maintain its stability. By the close of reporting on October 8, Bitcoin had dipped by 1.8%, settling at $62,332. The wider cryptocurrency market also experienced a significant shake-up, with over $218 million worth of liquidations.
Ethereum ETFs log zero flow day
Unlike Bitcoin, there was a calm day for Ethereum spot ETFs. According to data from SoSoValue, none of the nine U.S.-listed Ethereum ETFs received inflows on October 7th, following modest net inflows of approximately $7.39 million on the previous trading day. The trading volume for these ETFs decreased substantially as well, falling from $148.01 million to $118.43 million in a single day.
The value of Ethereum (ETH) followed the general market trend and dipped by 2.9%, reaching $2,417, even though there was a rise in Bitcoin-associated investments, indicating that investors were still hesitant and cautious during this period.
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2024-10-08 10:00