US spot Bitcoin ETFs saw a revival on Tuesday, with inflows amounting to $117 million. This was led by Fidelity’s Bitcoin Fund (FBTC), which added $63 million in net inflows. This comes after recent weeks of significant outflows affecting some of the largest crypto funds.
Fidelity’s Bitcoin Fund Leads with $63M Inflow
Fidelity’s Bitcoin Fund had the highest net inflow on Tuesday, with $63 million pumped into it. After eight months of trading, this has taken the fund’s total net inflows to $9.5 billion. FBTC is the third largest Bitcoin ETF, with $10.5 billion in assets after BlackRock’s iShares Bitcoin Trust (IBIT) and Grayscale’s Bitcoin Trust (GBTC).
Other funds also posted good results, with Grayscale’s Bitcoin Mini Trust raising $41 million and ARK Invest’s Bitcoin ETF raising $13 million. However, BlackRock’s IBIT, the most significant Bitcoin ETF, and several others did not witness any inflows during the session. However, the increase in inflows demonstrates that investors are still eager for Bitcoin ETFs even after recent losses.
Ethereum ETFs See $11 Million Inflow Rebound
Similarly, Ethereum ETFs experienced a slight rebound with inflows of $11 million. Fidelity’s Ethereum Fund (FETH) received $7.1269 million, while BlackRock’s iShares Ethereum Trust (ETHA) attracted $4.3101 million in investments. Some other Ethereum ETFs remained relatively stagnant as investors focused on these primary products.
Earlier this year, there were outflows from Ethereum ETFs, but FETH and ETHA have recently experienced inflows due to investor confidence. An upswing in the overall cryptocurrency markets has also helped these funds’ performance. However, a large portion of the Ethereum market is still pretty cautious after the recent losses that occurred earlier in the month.
iShares Ethereum Trust Hits $1 Billion Inflows
Despite the recent setbacks, crypto-based ETFs will remain the most popular market throughout 2024. The top four of the 400 new ETFs launched this year are Bitcoin ETFs: BlackRock’s iShares Bitcoin Trust, Fidelity’s Wise Origin Bitcoin Fund, ARK 21Shares Bitcoin ETF, and Bitwise’s Bitcoin ETF Trust.
In August, the iShares Ethereum Trust ETF became the seventh-largest ETF launch of 2024, with inflows crossing the $1 billion mark. The launch of these crypto ETFs shows that they remain relevant in the financial markets even with price fluctuations. Investors have continued buying such products, seeking exposure to this new and dynamic cryptocurrency market.
BlackRock’s IBIT Suffers Second Withdrawal
On Tuesday, inflows followed heavy outflows that started at the end of August and continued in the early days of September. Over 1 billion US dollars of Bitcoin and Ethereum funds were withdrawn during this period. BlackRock’s IBIT, the biggest Bitcoin ETF, experienced its second withdrawal since its launch in January.
Bitcoin was hardest hit, with an outflow as low as $643 million recently. However, some investors have been cautious under the present scenario, and short-Bitcoin products received an influx of $3.9 million to hedge against further price decline. Bitcoin, however, did not perform well in September, so it is referred to as ‘Rektember’ within the crypto community.
Outflows from Ethereum also came under pressure, standing at $98 million, the bulk of which was from the Grayscale Ethereum Trust. The recent inflows suggest that there is a possibility of a comeback, although the market’s volatility is still a cause for worry. However, the crypto ETFs still command a lot of attention from the market, which shows that long-term investors still have faith in digital currencies.
