As an analyst with over two decades of experience in the financial markets, I find it fascinating to witness such contrasting trends unfolding within the realm of crypto ETFs. The resilience and growing appeal of Bitcoin ETFs, even amidst a price drop, is noteworthy. Investors seem to be increasingly confident in these vehicles, as evidenced by BlackRock’s IBIT leading the charge with staggering inflows.
As a cryptocurrency investor, I was surprised to see that despite Bitcoin‘s price dropping below $67,000 on October 22nd, exchange-traded funds focused on Spot Bitcoin managed to attract $294.29 million in net inflows. This indicates strong confidence among investors even during periods of market volatility.
On October 22nd, the price of Bitcoin dipped by approximately 3.25%, moving down from a peak of $69,227 to a low of $66,975. This dip led to around $167 million worth of long positions being liquidated across the crypto market, with Bitcoin accounting for roughly $40.53 million and Ethereum taking the lead with $55.9 million in liquidations.
Currently as I speak, the price of Bitcoin (BTC) hovers approximately at $67,500, experiencing a 2.3% decline over the last day.
Despite a drop in Bitcoin’s value, investor faith in Bitcoin spot ETFs remains robust as these funds have seen seven consecutive days of increased investment. In the past week alone, U.S.-based Bitcoin spot ETFs amassed over $2.1 billion and continued the streak with an additional $294.29 million at the start of this current week.
On October 21st, BlackRock’s IBIT took the lead, attracting approximately $329 million. The IBIT fund has rapidly become a popular choice among investors looking to invest in Bitcoin, accumulating over $1 billion in new investments last week, which accounted for half of all inflows into U.S. spot Bitcoin ETFs during that period.
Due to its impressive returns, the fund has managed to outperform Vanguard’s Total Stock Market ETF in terms of inflows this year, placing it third among all ETFs, as reported by Bloomberg ETF analyst Eric Balchunas.
On Monday, Fidelity’s FBTC saw an influx of approximately $5.9 million, whereas not every ETF enjoyed the same fortune. Competitors like Bitwise’s BITB, ARK, 21Shares’ ARKB, VanEck’s HODL, and Grayscale’s GBTC experienced withdrawals exceeding $40 million, while certain other ETFs didn’t receive any new investments.
Ethereum ETFs face outflows amidst market downturn
While Bitcoin ETFs saw robust inflows, Ethereum-based ETFs faced a different scenario.
On October 21st, Ethereum ETFs experienced a total withdrawal of approximately $20.8 million, breaking a three-day streak of deposits. The largest portion of these withdrawals, amounting to $29.58 million, came from Grayscale’s ETHE fund.
BlackRock’s ETHA and VanEck’s ETHV experienced investments totaling $4.86 million and $3.92 million respectively, partially counteracting withdrawals. On the other hand, other Ethereum-based ETFs didn’t see any activity during the day.
At the time of writing, Ethereum (ETH) was trading at $2,643, down 3.4% over the past 24 hours.
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2024-10-22 10:00