Bitcoin ETF Investments Surge by 400%, Establishing Record Highs
Fresh capital inflows into Bitcoin and Ethereum exchange-traded funds (ETFs) in the United States hint at a potential shift in market sentiment. Bitcoin ETFs saw significant investment flows on September 10, reversing a trend of withdrawals. Similarly, Ethereum ETFs halted their five-day outflow streak, though they face distinct challenges.
These inflows come at a time when institutional interest in cryptocurrencies remains mixed. While Bitcoin attracts more capital, Ethereum appears to be losing ground. When considering global crypto ownership trends, this dynamic paints a complex picture of the future market trajectory.
Leading the charge are ETFs based on Bitcoin, with data showing that on September 10, Bitcoin spot ETFs attracted nearly $117 million, marking a 400% increase from the previous day. This surge follows a series of withdrawals that had reduced overall assets under management by over $1.18 billion.
Fidelity’s FBTC led with $63 million in inflows for two consecutive days, followed by Grayscale Bitcoin Mini Trust and ARK 21Shares with $41 million and $12.7 million, respectively. Despite promising inflows, the total trading volume for the 12 Bitcoin ETFs dropped by 55% to $712 million, down from $1.61 billion the day before, signaling a need for investor caution.
These figures align with the 2024 Global State of Crypto study by Gemini, revealing consistent crypto ownership despite market volatility. The study notes a rise in ownership in France from 16% to 18%, while 21% of Americans and 18% of Britons hold crypto. In contrast, Singapore witnessed a slight decline from 30% to 26% in ownership.
Turning to Ethereum ETFs, while the landscape is less clear compared to Bitcoin, there are signs of robust flows. Ethereum spot ETFs recorded net flows of $11.4 million on September 10, breaking a five-day streak of outflows. Fidelity’s FETH led with $7 million in inflows, followed by BlackRock’s ETHA with $4.3 million, although seven Ether ETFs showed no flows.
Despite positive inflows, Ethereum faces challenges, as evidenced by WisdomTree withdrawing its spot Ethereum ETF application and VanEck closing its Ethereum Strategy ETF. These actions, coupled with a cumulative net outflow of $562 million in Ether ETFs to date, suggest waning institutional confidence in Ethereum-based products.
The global crypto landscape presents diverse patterns, with varying levels of ownership across different markets. The market’s recovery hinges on the resilience of long-term investors, as highlighted by Gemini’s research, which suggests that these factors, along with regulatory developments and spot ETFs, could drive future growth.
Image sources: CBC (featured image), TradingView (chart).
