U.S. Bitcoin ETFs Attract $366M in Investor Funds
U.S. Spot Bitcoin ETFs See Record $365.7 Million Inflow, Led by ARK 21Shares and BlackRock.
Key Takeaways:
- U.S. spot Bitcoin ETFs saw their largest daily inflow in over two months on September 26.
- Total inflows for the 11 U.S. spot Bitcoin ETFs was $365.7 million.
- ARK 21Shares Bitcoin ETF led with $113.8 million, followed by BlackRock's $93.4 million inflow.
Farside Investors reported a significant milestone for U.S. spot Bitcoin exchange-traded funds (ETFs) on September 26. The funds saw their largest daily net inflow in over two months, reaching $365.7 million, as Bitcoin's price surged past $65,000.
US Bitcoin ETFs Soars Amids Outflows From ETH ETFs
Notably, this inflow marks the sixth consecutive trading day of inflows for institutional investment products, indicating sustained interest in Bitcoin investment products. This latest influx trails only the July 22 record of $486 million.
The recent surge in US Bitcoin ETFs was led by the ARK 21Shares Bitcoin ETF, which attracted an impressive $113.8 million in inflows, outpacing its peers. BlackRock's iShares Bitcoin Trust followed closely with $93.4 million.
At the same time, Fidelity Wise Origin Bitcoin Fund, Bitwise Bitcoin ETF, and VanEck Bitcoin ETF also made substantial gains, securing $74 million, $50.4 million, and $22.1 million, respectively.
In stark contrast, Ethereum ETFs continue to decline, with Farside Investors reporting a net inflow of $100,000 from nine spot Ethereum funds on September 26.
This lackluster performance suggests a pronounced lack of momentum in the Ethereum ETF market, underscoring the divergent fortunes of Bitcoin and Ethereum investment products.
Despite BlackRock and Fidelity attracting more than $15 million in inflows for their respective spot Ether funds, the overall outlook for ETH ETFs remains weak. Grayscale’s high-fee Ethereum Trust, in particular, recorded an outflow of $36 million on the same day.
The contrast between the two leading cryptocurrencies is striking. While Bitcoin's value and perceived stability continue to attract institutional funds, Ethereum's fluctuating performance is causing some investors to pause. It remains to be seen whether Ethereum can reclaim momentum or if Bitcoin’s lead will continue to grow.
BTC ETFs Boom Comes Amid BTC Price Growth
Bitcoin has seen an impressive price jump in the past two weeks, gaining nearly 13% as the Federal Reserve’s interest rate cut boosted market optimism. Trading above $65,000 for the first time in four weeks, the surge has caught the attention of investors, especially in the US Bitcoin ETFs market, driving the massive inflow of $365.7 million inflow.
The relationship between Bitcoin’s price and ETF inflows is clear. As the price rises, institutional investors, who often favor ETFs to gain exposure to Bitcoin without directly holding the asset, jump in to capitalize on potential profits.
Bloomberg ETF analyst Eric Balchunas provided additional insight on September 25, noting that US spot Bitcoin ETFs are “92% of the way to owning 1 million Bitcoin and 83% of the way to surpassing Satoshi Nakamoto as the largest Bitcoin holder.”
In simpler terms, this highlights the growing dominance of Bitcoin ETFs in accumulating large portions of Bitcoin’s supply. Should these trends continue, institutional investors through ETFs could soon control a larger stake than Satoshi Nakamoto, the anonymous creator of Bitcoin.
The rise in Bitcoin’s price is also affecting the options market. Luuk Strijers, CEO of Deribit, noted that around 20% of Bitcoin options set to expire are already profitable. This could trigger market activity as traders adjust or close positions, increasing volatility.
As Bitcoin’s price fluctuates, it may influence Bitcoin ETFs, driving institutional investors to either buy or sell, which could further fuel the market's volatility and impact ETF inflows or outflows.
Jimmy Aki
Drawing from his background in economics, Jimmy has monitored blockchain development for years, firmly believing in its power to democratise finance. Beyond offering commentary on the latest crypto developments, he also spends his time analysing open-source codes of promising projects on GitHub. Jimmy holds Bitcoin and Ethereum.
Related Posts
Updated Sep 26th, 2024
BlackRock Head Says Bitcoin is a ‘Unique Diversifier,’ Not a ‘Risk-On’ Asset
Updated Sep 26th, 2024
BlackRock Tokenized Fund Brings in Over $200 Million
Updated Jul 17th, 2024
Spot Bitcoin ETFs Amass $654M in BTC Within Three Days
