Bitcoin ETFs Recover with $254M Inflow Amid Market Trends

Spot Bitcoin ETFs Experience Significant Inflows

On October 11, U.S.-based spot Bitcoin exchange-traded funds (ETFs) marked a noteworthy recovery in the market, achieving $253.6 million in net inflows. This impressive figure broke a three-day streak of outflows and represents the third-largest inflow day on record when excluding contributions from BlackRock’s iShares Bitcoin Trust (IBIT).

Leading Contributors to Inflows

The Fidelity Wise Origin Bitcoin Fund was a significant contributor, leading the surge with a remarkable $117.1 million in inflows. Following closely was the ARK 21Shares Bitcoin ETF, which saw inflows of $97.6 million, according to the data from Farside Investors. Additionally, the Bitwise Bitcoin ETF reported its largest inflow in 11 trading days, bringing in $38.8 million.

Other ETFs like the Invesco Galaxy and VanEck Bitcoin ETFs contributed positively to the inflow trends, further demonstrating the growing investor interest in Bitcoin ETFs.

BlackRock's Continued Dominance

Despite the positive trends, BlackRock's IBIT and several other funds—including those from Franklin Templeton, Valkyrie, and WisdomTree—did not report any inflows on that day. However, the overall inflows compensated for the $140 million outflow recorded between October 8-10. The inflow was punctuated by a 7.3% rally in Bitcoin prices, which surged to $63,360 before stabilizing around $62,530 as per CoinGecko data.

Market Share Insights

BlackRock continues to lead the spot Bitcoin ETF market, boasting a commanding $21.7 billion in total net inflows. Fidelity is not far behind, approaching the $10 billion mark, just $15 million short. Only ARK 21Shares and Bitwise have reported net inflows exceeding $2 billion among Bitcoin ETF issuers. Overall, spot Bitcoin ETFs have accumulated a total of $18.9 billion in net inflows to date.

Challenges for Ether ETFs

In contrast, the landscape for spot Ether ETFs appears less favorable. On the same date, seven of the nine U.S.-based spot Ethereum ETFs experienced zero inflows, marking the third occurrence of this trend in just five trading days. The combined performance of Ether ETFs resulted in a slight net outflow of $0.1 million, with inflows coming solely from Fidelity’s Ethereum Fund. In stark contrast, the Grayscale Ethereum Trust reported an outflow of $8.7 million.

Future Outlook

The contrasting trends between Bitcoin and Ether ETFs highlight the volatile nature of the cryptocurrency market. Investors should remain cautious and informed as market dynamics continue to evolve.