As a seasoned analyst with over two decades of market experience under my belt, I find it intriguing to observe the ebb and flow of investments in Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs). The recent trend of net inflows into Bitcoin ETFs, particularly led by heavyweights like BlackRock and WisdomTree, is a clear indication of growing investor confidence.
In the United States, Bitcoin ETFs recorded a surge of inflows for the first time in three days, whereas Ethereum ETFs faced an outflow of funds.
Spot Btcon ETFs log inflows of $45.1m
On August 7th, figures from Farside Investors showed a shift in trends for Bitcoin ETFs, as they experienced inflows of $45.1 million after three consecutive days of outflows totaling approximately $554.4 million.
In a recent development, BlackRock’s IBIT saw the highest inflows with approximately $52.5 million. This was closely followed by WisdomTree’s BTCW with an impressive $10.5 million, which represents its largest net inflow ever. Grayscale’s Bitcoin Mini Trust contributed $9.7 million, and Bitwise’s BITB recorded a net inflow of $3 million.
On August 7th, it was only Grayscale’s converted GBTC fund that experienced withdrawals among all Bitcoin ETFs, with a total of $30.6 million being taken out. Since its launch, this fund has had approximately $19.2 million in withdrawals. Meanwhile, the other Bitcoin ETFs remained unaffected and balanced in their holdings.
Based on SoSoValue’s records, the combined daily Bitcoin ETF trade volume amounted to approximately $1.79 billion on August 7, which is less compared to the $2.2 billion traded the previous day.
Since January, spot Bitcoin ETFs have accumulated a total net inflow of $17.23 billion.
Ether ETFs see outflows
On August 7th, there was a shift from inflows to outflows for Ethereum (ETH) ETFs amounting to approximately $23.68 million, marking a reversal after two consecutive days of investments.
Based on data from Farside Investors, it’s clear that the main cause of withdrawals was the Grayscale ETHE fund, which removed approximately $31.9 million. Since its inception, the Grayscale ETHE fund has experienced a total of $2.23 billion in outflows.
As an analyst, I’m reporting on the recent inflows for various cryptocurrency exchange-traded products (ETPs). Fidelity’s FETH witnessed a net inflow of approximately $4.7 million. Meanwhile, Bitwise’s ETHW and Franklin Templeton’s EZET recorded net inflows of $1.7 million and $1.8 million respectively. The remaining funds experienced no new inflows during this period.
Over the last two days, $387.7 million has been withdrawn from the funds since they were listed, but this outflow has been countered by Grayscale’s ETHE. In simpler terms, while money has been leaving these funds, Grayscale’s ETHE has been balancing it out.
As the Bitcoin ETF sees increased investments, this trend aligns with a wider revival in the crypto market, which is gradually bouncing back from the turbulence experienced on August 5. This upswing is driven by various factors such as apprehensions about an approaching U.S. recession, Federal Reserve policies, and instability within the Japanese financial markets.
Currently, Bitcoin (BTC) has increased by 1% over the last 24 hours, with its current value being $57,379. On the other hand, Ethereum (ETH) has decreased by approximately 42.9% during the same timeframe and is now trading at $2,426.
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2024-08-08 11:29