Spot Bitcoin ETFs experienced their largest net inflow day in two months, impacting the price of Bitcoin big time.
Investors poured over $360 million into US-based Bitcoin ETFs yesterday, so the demand is strong and suggesting potential future rallies for BTC.
Rising demand for spot Bitcoin ETFs
The behavior and perceptions of investors towards spot Bitcoin ETFs can influence price movements, and not in a negligible way!
When inflows increase, Bitcoin’s price tends to rise, and when outflows occur, the price often falls.
The market seems to think big guys know something what we don’t. Over the past few weeks, investors have been actively buying into these funds.
Since September 6, there have only been two trading days with net outflows out of a total of 14. And yesterday the $365.7 million in net inflows was the highest amount since July 22.
Leading the charge was Ark Invest’s ARKB with $113.8 million, followed by BlackRock’s IBIT at $93.4 million, Fidelity’s FBTC with $74 million, and Bitwise’s BITB contributing $50.4 million.
The only exception was Grayscale’s GBTC, which saw minor outflows of $7.7 million. Poor GBTC. As a result, BlackRock’s IBIT increased again its total assets under management to over $21.3 billion.
These inflows have coincided with a rise in Bitcoin’s price. But it is a cojncidence when the correlation is this high?
Since last Wednesday, when the US Federal Reserve announced a 0.5% reduction in key interest rates, investors have been actively investing in these ETFs.
During this period, Bitcoin’s price jumped from $59,300 to nearly $66,000 today, marking a nice 11% increase in just over a week.
Ethereum ETFs face challenges
Well, one thing is sure, Ethereum is not Bitcoin. In contrast to Bitcoin ETFs, spot Ethereum ETFs haven’t performed as well on US exchanges.
There are some positive signs, but the situation remains pretty challenging, as during the week of the Fed’s rate cut announcement, nearly $80 million left Ethereum funds.
September 24 and 25 saw a turnaround with net inflows of $62.5 million and $43.2 million, but we don’t know if it will be enough in longer term.
Outflows almost everywhere
Despite this recovery, yesterday brought another small net outflow of $0.1 million. Most of these losses came from Grayscale’s fund, which already lost about $36 million.
BlackRock’s ETHE and Fidelity’s FETH couldn’t offset these losses with outflows of $15.3 million and $15.9 million.
Despite this hardship for Ethereum funds, ETH’s price has risen more than 14% over the past week and is currently trading above $2,660.
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