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Cryptocurrency News Articles
Bitcoin ETFs Dominate While Ethereum Struggles, Digital Asset Market Sees $2.2B Inflows
Oct 23, 2024 at 09:09 pm
Despite Bitcoin's (BTC) price dip, spot Bitcoin exchange-traded funds (ETFs) enjoyed significant inflows of $294.29 million on Monday.
Bitcoin exchange-traded funds (ETFs) saw strong inflows on Monday despite a slight dip in the price of the flagship cryptocurrency.
According to Fund and Flows data from Finbold, Bitcoin spot ETFs enjoyed inflows of $294.29 million on October 22. The top inflow was recorded by BlackRock’s iShares Biotechnology ETF (IBIT), which saw inflows of $329.03 million on October 21.
The strong performance of the IBIT ETF has seen it outpace even Vanguard’s Total Stock Market ETF in terms of year-to-date inflows. As of October 22, the IBIT ETF ranks third overall for 2023 inflows, according to Bloomberg.
Meanwhile, competing funds like Bitwise’s BITB and ARK’s ARKB were hit with redemptions, while other ETFs struggled to keep up with the strong inflows into Bitcoin ETFs.
These funds saw more than $40 million in withdrawals. However, as the broader market declined, Bitcoin-focused ETFs continued to see strong inflows, indicating a positive outlook among investors toward the cryptocurrency.
Bitcoin ETFs shine as Ethereum struggles
The broader trend caught up to Fidelity’s FBTC ETF, which saw inflows of $5.9 million on October 22. Investors remained keen on pursuing Bitcoin ETFs to gain exposure to the top digital currency.
However, some ETFs failed to attract new investments, leading to net outflows. On October 21, net inflows for Ethereum-based ETFs stood at only $20.8 million.
Of these outflows, Grayscale’s ETHE fund encountered outflows of $29.58 million. Most Ethereum ETFs suffered outflows; however, there were inflows into Ethereum futures and inverse products like BlackRock’s ETHA and VanEck’s, respectively, with inflows of $4.86 million and $3.92 million.
This is largely due to the fact that Bitcoin remained the dominant factor in investors’ sentiments. For the week, Bitcoin-based products took in $2.13 billion in inflows, while Ethereum-based products received only $58 million.
To put this in perspective, the net inflows for Bitcoin ETFs were more than 36 times higher than those for Ethereum ETFs.
Digital asset market sees $2.2 billion inflows
The broader digital asset investment market showed optimism with inflows of $2.2 billion over the past week, marking the largest jump since July and indicating more investor confidence in the market.
Expectations of a Republican win in upcoming U.S. elections are largely seen as benefiting digital assets. Of the total inflows, $2.3 billion went into the U.S., followed by Canada, Sweden, and Switzerland, which saw small outflows.
The trend may be indicating profit-taking in non-U.S. markets. Meanwhile, short Bitcoin products also lured $12 million, marking the biggest since March.
Other altcoins like Solana, Litecoin, and XRP gained less than Bitcoin’s dominance, which remained the primary focus of investors’ interest despite the market’s volatility.
In this growing market trend, Ethereum and other digital assets are playing a secondary role.
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