Bitcoin ETFs See $235M in Inflows as HBO Documentary Sparks Anticipation for BTC

U.S. spot Bitcoin exchange-traded funds (ETFs) witnessed a significant surge in net inflows. Bitcoin ETFs saw $235.19 million in capital last Monday

U.S. spot Bitcoin exchange-traded funds (ETFs) saw a significant surge in net inflows on Monday, amassing a collective $235.19 million after two days of capital inflows. This trend reflects a growing investor interest in the market, especially considering the market conditions.

The FBTC ETF from Fidelity led the net inflows on Monday, bringing in $103.68 million in capital. Following closely behind was BlackRock’s IBIT ETF, which saw inflows of $97.88 million. This marks a strong recovery for the fund after it saw no flows on Friday.

Other ETFs, including Fidelity and BlackRock, also reported big inflows. New investments for Ark and 21Shares’ ARKB ETF saw $12.63 million, while Bitwise’s BITB ETF drew $13.09 million. A diverse interest emerged from VanEck’s HODL ETF, which saw inflows of $5.37 million, and Invesco’s BTCO ETF, which saw inflows of $2.53 million. This demonstrates a shift in preference towards products that offer alternatives to the top, most significant funds for settling in a steady pool.

Overall, Bitcoin ETFs traded a combined $1.22 billion on Monday, following a $1.19 billion volume reported on Friday. Altogether, this showcases growing market activity with positive data on the capital front.

On the other side of the spectrum, U.S. spot Ethereum ETFs saw a stagnant net inflows period. These funds reported $0 inflows on Monday, a shift from the $7.39 million seven days prior. However, the combined trading volume for the nine Ethereum ETFs took a downturn, dropping to $118.43 million from $148.01 million on Friday.

Bitcoin and Ethereum prices dropped in light of the mixed ETF performance. Bitcoin slid 2.65% to $62,539, and Ethereum dropped 3.45% to $2,430. Despite the lower prices, the net inflows into Bitcoin ETFs reflect a divergence of sentiment towards the two leading cryptocurrencies.

Digital Asset Products Faced $147 Million Outflows

Digital asset investment products saw outflows of $147 million last week, a shift in capital trends as investor caution increased. Overall, the market saw a minimal change in direction. Strong economic indicators have steered people’s expectations towards less-than-expected interest rate cuts.

Despite this, exchange traded products (ETPs) trading volumes rose by 15% to $10 billion. This increase runs counter to the broader crypto market’s lower activity levels. Notably, outflows from Bitcoin were at the heart of this movement, with $159 million in outflows from the protocol.

Specifically, $2.8 million flowed into products explicitly meant to short Bitcoin, an indication of investor hedging in the market under uncertain conditions. Similarly, outflows from Ethereum picked up as interest waned, with $29 million leaving the protocol.

In contrast to Bitcoin and Ethereum, multi-asset investment products continued to see outperformance. Inflows of $29 million into these products marked the 16th consecutive weekly increase. Investors seeking a diversified product have steered a total of $431 million into multi-asset products since June.

Market analysts are beginning to build on the “Uptober” narrative. Strong Non-Farm Payroll (NFP) data has sparked renewed interest in Bitcoin. Also boding well for Bitcoin is the anticipation for an upcoming HBO Bitcoin documentary.

The bullish outlook for Bitcoin in the 4th quarter is evident in the options flow. December BTC call spreads are in a hot zone, with price targets of $75,000 and $95,000. The result is a rather bullish bet amongst investors on a strong October performance as market dynamics shift.