As a seasoned researcher with years of experience navigating financial markets, I find the recent trends in Bitcoin and Ethereum exchange-traded funds (ETFs) particularly intriguing. The drop in net inflows for Bitcoin ETFs, despite the surging price of Bitcoin, presents a puzzle that needs unraveling. It’s like watching a game of chess where one player is moving pieces aggressively, yet the other seems to be holding back.
On September 23, there was a notable decrease in investments flowing into Bitcoin-based exchange-traded funds (ETFs) in the U.S., whereas Ether ETFs had halted their two-day streak of attracting new investments.
Based on information from SoSoValue, Bitcoin ETFs holding the 12th position saw a total of $4.56 million in net investments yesterday, which is a 95% decrease compared to the $92 million inflows observed on the preceding trading day. Once again, Fidelity’s FBTC fund led with an impressive $24.9 million in incoming funds. This follows nine consecutive days of positive investment and a single day of neutral flow for the fund.
On the 4th day of no inflow, BlackRock’s IBIT, the largest Bitcoin ETF, saw a surge with an investment of approximately $11.5 million. Meanwhile, Grayscale Bitcoin Mini Trust attracted about $8.4 million.
Yesterday, Grayscale’s Bitcoin Trust (GBTC) was the only Bitcoin Exchange-Traded Fund to experience withdrawals, with a total of $40.3 million being taken out. Since its launch, this has resulted in overall withdrawals amounting to a substantial $20.1 billion. Meanwhile, the remaining eight Bitcoin ETFs saw no transactions on that particular day.
On September 23rd, the combined trading volume for the 12 Bitcoin ETFs decreased to approximately $949.7 million, compared to $980.5 million the day before. Since they were launched, these funds have collectively seen a total net inflow of around $17.7 billion.
In the last week, Bitcoin’s (BTC) value increased by approximately 8.3%, hitting a high of $64,501. At present, it is valued at $63,293, marking a slight decrease of 0.6% in the last day. The trading volume is currently $25.9 billion, and its market capitalization stands at an impressive $1.25 trillion.
As interest from investors continues to increase, it’s anticipated that the price of Bitcoin will rise further. Analyst Eric Balchunas from Bloomberg suggested that major players such as BlackRock might even triple their Bitcoin holdings by the close of next year.
When investors purchase shares of these ETFs, it triggers the issuers to acquire the same quantity of Bitcoin. This increased buying action boosts demand and continues to strain the already scarce supply of Bitcoin.
Spot Ether ETFs break inflow streak
Yesterday, U.S. Ethereum ETFs experienced overall withdrawals amounting to $79.3 million, a reversal from the positive inflows recorded the day before. All these withdrawals stemmed from Grayscale’s ETHE fund, with an outflow of approximately $80.6 million.
On that particular day, Bitwise’s ETHW recorded inflows worth approximately $1.3 million, helping to somewhat balance the outgoing flows.
On September 23rd, the trading activity for these investment tools significantly increased, reaching a value of $167.3 million compared to the previous day’s figure of $139.4 million. Furthermore, the Ether Exchange-Traded Funds (ETFs) have collectively experienced a substantial net outflow amounting to $686.68 million. At the moment of release, Ethereum (ETH) was being traded at approximately $2,639.
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2024-09-24 10:56