Spot Bitcoin ETFs record largest single-day inflow in over four months

by

As a seasoned crypto investor with a knack for spotting market trends and a portfolio that mirrors the cryptosphere itself – diverse yet focused, I find the recent surge in Bitcoin ETF inflows quite intriguing. With over two decades of experience in finance under my belt, I’ve seen bull markets rise and bear markets fall, but never have I witnessed such a dramatic shift in investor sentiment towards digital assets as we are seeing today.

Investor interest in Bitcoin has spiked recently, as U.S.-based Bitcoin exchange-traded funds (ETFs) have seen their biggest influx of money in more than four months. This suggests that the cryptocurrency market is recovering.

According to data from SoSoValue, the combined inflow of funds into twelve Bitcoin Exchange-Traded Funds (ETFs) was approximately $555.86 million on October 14th. This figure is more than double the $253.54 million influx recorded on the preceding trading day.

Out of the twelve ETFs, Farside’s FBTC had the highest investment influx at approximately $239.25 million, which is its largest since June 4 and marks the second consecutive day of such inflows. Bitwise’s BITB fund also experienced significant investments totaling $100.2 million, while BlackRock’s IBIT saw a return of $79.51 million in fresh investments following a brief period of inactivity.

Other significant investment funds like ARK Invest and 21Shares’ ARKB saw a total inflow of approximately $69.8 million. Additionally, Grayscale’s GBTC experienced an influx of around $37.77 million, marking its first intake since September 27. However, Grayscale’s GBTC has faced difficulties, with a whopping $20.15 billion in total outflows since its debut, despite recent positive trends.

These smaller investment options – HODL, EZBC, BTCO, the Grayscale Bitcoin Mini Trust, and Valkyrie’s BRRR – together brought in a total of $29.34 million more in investments.

On October 14th, I witnessed an exhilarating rise in Bitcoin’s (BTC) price, escalating from $62,500 to a day’s pinnacle of $66,500, marking a two-week high for me as an investor. Simultaneously, the trading volumes across Bitcoin ETFs skyrocketed. The combined volume among the 12 Bitcoin ETFs surged significantly, reaching a staggering $2.61 billion, mirroring a revitalized enthusiasm within the market.

As of the deadline, Bitcoin was being exchanged at approximately $65,268, and according to ETF Store President Nate Geraci, it was an exceptionally strong day for exchange-traded funds (ETFs) that deal directly with Bitcoin.

For approximately the last ten months, Bitcoin Exchange-Traded Funds (ETFs) have experienced an astounding surge in investments, totaling around $19.36 billion. These financial experts anticipate continued expansion for these funds.

In a recent post on October 14th, senior ETF analyst at Bloomberg, Eric Balchunas, likened Bitcoin ETFs to investment products backed by gold. He pointed out that these Bitcoin funds have reached record highs no less than five times since they were first launched in January.

Conversely, Gold Exchange-Traded Funds (ETFs) have experienced relatively small inflows of approximately $1.4 billion so far this year, even though the price of gold has reached new peaks a total of 30 times in the year 2024.

Ethereum ETFs struggle to match Bitcoin’s performance

On October 14th, Bitcoin ETFs had a substantial increase in investments, while Ethereum ETFs received fewer new funds. Specifically, Ethereum-focused investment funds recorded only $17.07 million in total inflows for the day, with BlackRock’s ETHA fund accounting for the largest share at approximately $14.31 million.

Last week, the Ethereum ETFs from Fidelity (FETH), Invesco (QETH), and 21Shares (CETH) experienced relatively modest investments totaling approximately $1.31 million, $1.05 million, and $393.69K respectively. Meanwhile, other Ethereum spot ETFs failed to attract any new investments.

Although the incoming investments were relatively small, the trading volume for Ethereum ETFs grew significantly on October 14, hitting $210.4 million compared to $143.54 million the previous day. However, since their introduction in July, these Ethereum ETFs have experienced overall outflows amounting to $541.82 million. Simultaneously, the price of Ethereum (ETH) exhibited signs of improvement, rising by 2.8% to $2,594 as of the latest report.

Read More

2024-10-15 10:02