Bitcoin and Ethereum ETFs See Big Inflows, Signaling Market Response to Political Developments and Economic Indicators

Bitcoin BTC/USD and Ethereum ETH/USD spot ETFs saw substantial inflows on Sep. 10, with Bitcoin ETFs attracting $117 million and Ethereum ETFs $11.437 million in net inflows.

Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) spot ETFs (exchange-traded funds) witnessed substantial inflows on Sep. 10, as revealed by fund flow data.

Bitcoin ETFs attracted $117 million in net inflows, with Grayscale's mini ETF BTC recording an inflow of $41.128 million in a single day, according to data from SoSo Value.

Fidelity's ETF FBTC emerged as the top performer, contributing $63.1561 million to the total inflow.

These two ETFs accounted for the bulk of the net inflow for Bitcoin spot ETFs on Sep. 10.

Meanwhile, Ethereum ETFs saw a total net inflow of $11.437 million, following five consecutive days of outflows, as per the data.

Fidelity's ETF FETH led the Ethereum inflows with $7.1269 million, while BlackRock's ETF ETHA added $4.3101 million, indicating a potential shift in investor sentiment towards the second-largest cryptocurrency.

The fund flow data coincides with the cryptocurrency market's response to recent political developments and evolving economic indicators.

Ben El-Baz, Managing Director of HashKey Global, spoke with Benzinga about the recent U.S. presidential debate, which directly impacted Bitcoin's price, causing a sharp drop during the event.

He attributed this to market concerns about future policy uncertainties.

Emphasizing the growing importance of Web3 technologies in the political landscape, El-Baz stated, “Regardless of which candidate ultimately wins, the rise of Web3 has become an irreversible historical trend. Both the Democratic and Republican parties need to establish leadership in this technological revolution to win voter support.”

Data analytics firm CryptoQuant provided analysis suggesting a potential upcoming Bitcoin bull run and highlighted decreasing Bitcoin reserves on exchanges and rising stablecoin reserves as key factors.

“The combination of shrinking Bitcoin reserves and rising stablecoin reserves sets the stage for a bullish price breakout. With reduced Bitcoin supply and growing buying power, the market is primed for a potential upward move,” CryptoQuant stated.