Spot Bitcoin ETFs have seen $2.11 billion in net inflows in the past five trading days. The surge in interest in Bitcoin (BTC) as an investment asset shows that this momentum will continue.
From October 1 to 17, Bitcoin ETFs have seen a record $20.66 billion in net inflows, most of which amounted to $470.48 million on October 17 alone. A recent rush of inflows shows Bitcoin remains popular among institution and retail investors.
As more people start participating in these funds, Bitcoin ETFs, also known as cryptocurrency investment funds, are now the ticket to ride in crypto investments. This also demonstrates a broader trend of investors putting money in digital assets and something unknown and very volatile.
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BlackRock’s Bitcoin ETF Nets $309M on NASDAQ Debut
On October 17, BlackRock’s Bitcoin ETF (IBIT) was listed on NASDAQ with an enormous net inflow of $309 million. This is one of the largest daily inflows for Bitcoin ETFs, making it the single most significant contributor.
The fund’s total net assets are now an impressive $25.79 billion. Grayscale’s Bitcoin Trust (GBTC) posted smaller net inflows than other significant players in the market.
Despite $20.10 billion in cumulative outflow, Grayscale registered a net inflow of $45.7 million on October 17. The net inflows in Fidelity’s Bitcoin ETF (FBTC), listed on the CBOE, rose by $11.69 million to $10.29 billion.
The implications are clear. We see these developments as a strong trend of institutional engagement with Bitcoin ETFs. However, the demand for these financial products is constantly increasing, and leveraged Bitcoin funds are garnering increasingly more attention from investors as a means of exposure to Bitcoin.
Ethereum ETFs Attract $48.41M in Inflows
On October 17, there was a $48.41m net inflow for Ethereum ETFs. However, it signals renewed investor interest in Ethereum. Although Bitcoin still eclipses Ethereum in ETF markets.
BlackRock’s Ethereum ETF (ETHA), reporting a net inflow of $23.56 million, remains one of the main players in Ethereum ETFs listed on NASDAQ. On the same day, the net inflow into Grayscale’s Ethereum Trust (ETHE) was $5.13 million, as its net assets ballooned to $1.02 billion.
But Ethereum ETFs still have a long way to go. However, cumulative net inflows for all Ethereum ETFs have been negative at -$481.9 million, with outflows outpacing inflows in the last couple of months. Despite that, the total net assets of Ethereum ETFs grew to $7.18 billion, or 2.30% of Ethereum’s overall market cap.
US Investors Show Rising Demand for Crypto ETFs
Investors in the U.S. have been on the rise regarding their demand for cryptocurrency ETFs. According to Charles Schwab, forty-five percent of surveyed Americans will invest in crypto through ETFs within the next year. Compared to the prior year, this represents a 38% increase in interest in digital assets.
Excitement for crypto is stronger among millennial ETF investors. 62% of millennial respondents planned to allocate funds to cryptocurrencies, compared to 48% for U.S. stocks. Meanwhile, baby boomer investors were much less interested in digital assets: only 15% planned to invest in cryptocurrencies.
These days, the demand for cryptocurrency ETFs is greater than the demand for bonds and other alternative assets, solidifying digital currencies’ role in disposable investment portfolios more than ever.
