With new trends emerging within the crypto-asset management industry, Bitcoin ETFs remain popular, with about $360 million invested in one day. On the other hand, ETFs related to Ethereum experienced net outflows, which can be attributed to the distinction between the two leading cryptocurrencies.
Bitcoin ETF Inflows Surge Amid Bullish Sentiment
A great volume of 5,246 BTC, equivalent to about $360.28 million, was pumped into Bitcoin ETFs by October 25th, 2024, marking a new shift towards financialized Bitcoin products. This takes the net flow of 7-day Bitcoin ETFs to as high as 14,782 BTC, which is equivalent to $1.02 billion, signaling the fact that there is considerable demand from investors.
Blackrock’s iShares Bitcoin Trust took the lead with an Inflow of 4,369 BTC ($300 million) that put its overall holding at 403,725 BTC ($27.73 billion). On the same note, Fidelity’s Wise Origin Bitcoin Fund and the ARK 21Shares Bitcoin ETF noted a daily inflow of 852 and 499 BTC, respectively. Altogether, current Bitcoin ETFs have ownership of 972,575 BTC which in value equal to about $66.79 billion.
The increasing flow into the Bitcoin ETFs is a signal towards the positive value of Bitcoin as well as a store and hedge against macroeconomic volatilities.
Ethereum ETFs Struggle with Outflows
While the inflows to Bitcoin ETFs are growing, Ethereum ETFs are not the same story. According to Lookonchain, the daily net outflow for the Ethereum ETFs is 387 ETH ($973,000), and the overall 7-day net outflow is 2,917 ETH (about $7.34 million). It is also important to highlight that there is a significantly higher demand for Bitcoin ETFs.
Grayscale’s Ethereum Trust, the ETF with the highest Ethereum holdings of 1,604,967 ETH, showed a 1-day net outflow of 110 ETH and a more significant 7-day outflow of 14,841 ETH. In contrast, the iShares Ethereum Trust was slightly able to record a 7-day inflow of 7,271 ETH, meaning that investors are interested and willing to participate. However, overall sentiment on Ethereum-backed ETFs remains bearish due to small flows to counter big outflows.
The Diverging Paths of Bitcoin and Ethereum ETFs
Despite the increasing and evolving growth of Bitcoin and Ethereum, the prospects of the Ethereum ETFs make it difficult to restore investors’ attention. For now, flows into Bitcoin ETFs are soaring, much to the benefit of Bitcoin, which remains the clear leader in terms of institutional investments in the crypto space.
