On October 14, the United States saw its largest inflow day for spot Bitcoin exchange-traded funds (ETFs) in over four months, with more than half a billion dollars flowing into the market. According to data from Farside Investors, the 11 ETFs recorded aggregate net inflows of $555.9 million, marking the highest daily net inflow since early June.
This surge in inflows coincided with Bitcoin’s price movement, which reached a two-week high of $66,500 during late trading on October 14. ETF Store President Nate Geraci characterized the day as a “monster day” for spot Bitcoin ETFs, noting that total net inflows for the past ten months are approaching $20 billion.
Geraci emphasized the significance of this influx, stating, “Simply ridiculous and blows away every pre-launch demand estimate.” He attributed the inflows not to speculative retail investors but to financial advisers and institutional investors gradually adopting Bitcoin as a mainstream investment.
Leading Funds and Notable Inflows
The Fidelity Wise Bitcoin Origin Fund (FBTC) led the charge, boasting an inflow of $239.3 million, the highest since June 4. Other notable funds included the Bitwise Bitcoin ETF (BITB), which attracted just over $100 million, and BlackRock’s iShares Bitcoin Trust (IBIT), which saw inflows of $79.6 million.
The Ark 21Shares Bitcoin ETF (ARKB) also performed well, recording inflows of just under $70 million. Additionally, the Grayscale Bitcoin Trust (GBTC) experienced its first inflow for October, amounting to $37.8 million, the highest since early May.
Comparisons to Gold ETFs
In an insightful analysis, Bloomberg senior ETF analyst Eric Balchunas compared the performance of Bitcoin ETFs to gold-based products. He highlighted that since the launch of Bitcoin ETFs in January, the asset has hit an all-time high five times. In contrast, gold has achieved record highs 30 times this year, yet gold ETFs have seen only $1.4 billion in net inflows, significantly less than the more than $19 billion accumulated by Bitcoin ETFs.
Ethereum Funds Lagging Behind
While Bitcoin ETFs enjoyed a substantial influx, Ethereum funds have not experienced the same momentum. Funds from Bitwise, VanEck, Franklin, and Grayscale saw zero net flows, while Fidelity and Invesco recorded only minor inflows. The BlackRock iShares Ethereum Trust (ETHA) managed to secure an inflow of $14.3 million, bringing its total to $17 million.
As the cryptocurrency market continues to evolve, the remarkable performance of Bitcoin ETFs signifies a growing institutional interest and confidence in digital assets, while Ethereum funds still face challenges in attracting similar attention.
October 2024, Cryptoniteuae
