Bitcoin ETFs Surge as Ether ETFs Continue Outflows
Bitcoin ETFs enjoy five days of strong inflows, while Ether ETFs continue to struggle with consistent outflows, reflecting diverging investor sentiment.
U.S. spot Bitcoin exchange-traded funds (ETFs) continued their streak of positive inflows, marking the fifth straight day of gains, while spot Ether ETFs experienced their fifth consecutive day of outflows. On Wednesday, Bitcoin ETFs saw a substantial inflow of $39.42 million, signaling growing investor interest in Bitcoin, even as Ether ETFs faced net outflows, highlighting a divergence in market sentiment.
Grayscale’s mini Bitcoin trust led the inflows, pulling in $14.2 million, followed by Fidelity and Bitwise’s Bitcoin funds, which each attracted around $10 million. BlackRock’s IBIT, the largest spot Bitcoin ETF by net assets, recorded $8.35 million in inflows. Meanwhile, Franklin Templeton’s EZBC and Invesco’s BTCO also saw positive activity, with inflows of $3.55 million and $2.46 million, respectively.
However, not all Bitcoin funds shared this positive trend. Grayscale’s converted GBTC fund was the only one to experience net outflows, losing $9.82 million. Six other funds, including Ark and 21Shares’ ARKB, reported no movement for the day, indicating stability in those particular ETFs.
Overall, the total trading volume for the 12 Bitcoin ETFs reached $1.42 billion on Wednesday, slightly up from $1.35 billion the previous day. Since their launch, these Bitcoin ETFs have accumulated $17.56 billion in net inflows, showing strong and sustained demand from investors.
In contrast, Ether ETFs continued to struggle, with net outflows totaling $17.97 million on Wednesday. Grayscale’s ETHE fund was the most affected, recording a significant $31.14 million in outflows. Despite this, some Ether funds still managed to attract investments, with Fidelity’s FETH leading the day’s inflows at $7.93 million. Grayscale’s Ethereum Mini Trust and Franklin Templeton’s Ether fund also saw positive inflows, bringing in $4.24 million and $1 million, respectively.
The trading volume for nine Ether ETFs hit $201 million on Wednesday, a slight increase from Tuesday’s $194.66 million. However, cumulative net outflows for Ether ETFs have now reached $458.08 million, highlighting ongoing challenges in retaining investor interest.
These contrasting trends between Bitcoin and Ether ETFs reflect broader market dynamics. Bitcoin continues to attract strong interest, benefiting from its position as the leading cryptocurrency. Ether, while still a major player, faces more volatility and uncertainty, contributing to its continued outflows.
In summary, while Bitcoin ETFs are enjoying consistent inflows, Ether ETFs are grappling with steady outflows. This divergence underscores the differing investor sentiments towards these two leading cryptocurrencies and illustrates the evolving landscape of the crypto market in 2024.
