As a seasoned researcher who has witnessed the cryptocurrency market’s volatile fluctuations over the years, I find myself both encouraged and puzzled by the recent trends in Bitcoin and Ethereum ETFs. On one hand, the resurgence of demand for Bitcoin ETFs is a testament to investors’ renewed confidence in this digital asset, particularly as its price rallies.
Last week’s downtrend for Bitcoin and Ethereum ETFs was broken, concluding the ongoing trading period with overall investments rather than withdrawals.
However, the situation around the ETH ETFs is quite underwhelming, to say the least, once again.
Bitcoin ETFs’ Demand Is Back
Last weekend, it was reported that CryptoPotato highlighted a dismal situation concerning the funds flowing into the 11 US-based Bitcoin ETFs. After eight consecutive days of inflows, the situation reversed, resulting in over $274 million being withdrawn from these products throughout the entire week.
On Monday, there was a very optimistic beginning as a total of $235.2 million flowed into the funds, marking net inflows. Leading the charge were Fidelity’s FBTC and BlackRock’s IBIT, each bringing in $103.7 million and $97.9 million respectively.
Over a three-day period, investors showed a shift in their actions, resulting in total outflows of $18.6 million on Tuesday, $40.6 million on Wednesday, and $81.1 million on Thursday. However, by the end of the trading week on Friday, this trend reversed as there were inflows of $253.6 million. Leading the charge was FBTC with $117.1 million, while ARK Invest’s ARKB also saw significant inflows of $97.6 million.
As a result of these recent events, the total amount for the week ended up being $348.5 million in net inflows. The occurrences on Friday may have even contributed to or sparked a significant increase in the price of Bitcoin. Starting from its low on Thursday at $58,800, BTC experienced a substantial rally, reaching a weekly high of $63,400 before slightly pulling back to its current level of $62,500.
The ETH Catch
The spot Ethereum ETFs also ended the week slightly in the green. Despite the $8.1 million withdrawn on Tuesday and $0.1 million on Friday, Thursday’s net inflows of $10.1 million managed to offset the losses.
Upon further examination, the overall figures align with a preliminary story suggesting insufficient demand for ETH ETFs. There were no significant inflows or outflows reported on Monday and Wednesday. This observation, along with an article published this week that contrasts the first 79 trading days of the Ethereum ETFs with the early months of Bitcoin ETFs, strengthens the idea that investors exhibit minimal enthusiasm for the second-largest cryptocurrency in ETF form.
Nonetheless, Ethereum’s price has rebounded following its Thursday plunge, with a weekly increase of approximately 2%. At the moment, it’s trading near $2,450, representing a rise of around $100 from its weekly minimum.
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2024-10-12 08:17