On Tuesday, U.S. spot Bitcoin ETFs saw substantial investments, recording $817.5 million in daily net inflows, building on a recent recovery in the cryptocurrency market. This followed a remarkable $1.1 billion in inflows the day before, contributing to a total trading volume of $5.7 billion across 12 spot Bitcoin ETFs, as reported by SoSoValue. Despite this influx, Bitcoin experienced a minor setback, dropping 3.4% over the last 24 hours to $86,855, which analysts suggest may indicate profit-taking after reaching its peak.Leading the inflow surge was BlackRock’s IBIT, with $778.3 million, making it the standout participant on Tuesday. IBIT has accumulated $1.93 billion in inflows just this week. Other significant contributors included Fidelity’s FBTC with $37.2 million, along with Grayscale’s Mini Bitcoin Trust and VanEck’s HODL, both exceeding $10 million in inflows. Conversely, not every Bitcoin ETF reported positive flows; Grayscale’s GBTC, the second-largest by net assets, experienced outflows of $17.8 million, while 21Shares’ Ark and ARKB saw declines of $5.4 million.This influx into Bitcoin ETFs is part of a larger market upswing, partly fueled by political developments like President-elect Donald Trump’s victory. Bitcoin had been rising, breaking through new price ceilings and briefly surpassing $90,000 earlier in the week. After hitting this peak, Bitcoin’s price pulled back, reflecting a tendency towards profit-taking. Analyst Valentin Fournier from BRN suggested that this decrease might signal a brief correction before another surge. Today’s Consumer Price Index (CPI) release could introduce additional volatility depending on how inflation figures align with market expectations.Simultaneously, Ethereum ETFs also experienced notable activity. The U.S. Spot Ethereum ETF recorded $135.9 million in net inflows on Tuesday, the second-highest daily inflow since launching. BlackRock’s ETHA led in this segment with $131.5 million, while Bitwise’s ETHW added about $17 million and Grayscale’s Mini Ethereum Trust brought in $12.7 million. Meanwhile, Grayscale’s ETHE, the largest spot Ether ETF, garnered $33.2 million in inflows. Consequently, the overall inflows for new Ether ETFs turned positive for the first time since their inception, now totaling $94.62 million, a notable recovery from the negative $686 million seen on September 23.Although Ethereum spot ETF trading volume decreased to $582.2 million on Tuesday from $913 million on Monday, it still represented the second-highest volume since late July. The rising interest from institutions in both Ethereum and Bitcoin ETFs underscores a growing acceptance and legitimacy of cryptocurrency within traditional markets. This increasing institutional capital highlights the optimism surrounding cryptocurrency investments. However, analysts caution that profit-taking and the imminent CPI report could incite short-term volatility. While the market seems to be stabilizing following recent gains, the outlook for both Bitcoin and Ethereum remains favorable, contingent on economic conditions and investor sentiment.
Bitcoin ETFs See $817 Million in Inflows Despite 3.4% Drop in BTC Price
Visited 3 times, 1 visit(s) today