Despite Bitcoin’s (BTC) price dip, spot Bitcoin exchange-traded funds (ETFs) enjoyed significant inflows of $294.29 million on Monday. The top inflow was $329.03 million on October 21 from BlackRock’s IBIT ETF.
The surge in investment in Bitcoin occurred even as it fell 3.25% from $69,227 to $66,975. BlackRock’s IBT ETF continues to see investor confidence grow, with the combined inflows over the last seven days totaling more than a billion Dollars.
The IBIT ETF’s strong performance has put it ahead of Vanguard’s Total Stock Market ETF with respect to year-to-date inflows. According to Bloomberg’s data, the IBIT ETF is now third overall for 2023 inflows.
– Advertisement –
Competing funds like Bitwise’s BITB and ARK’s ARKB were also suffering redemptions, and other ETFs struggled to keep up. This shows how competitive the market is.
These funds saw more than $40 million in withdrawals. While the overall market dropped, Bitcoin-focused ETFs continued with strong inflows, indicating a positive investor outlook.
Bitcoin ETFs Dominate While Ethereum Struggles
The broader trend of $5.9 million inflows on October 22 caught up to Fidelity’s FBTC ETF. Investors continue to express interest in pursuing Bitcoin ETFs to gain exposure to the top digital currency.
Yet, some ETFs did not share in this growth, with several seeing falling new investments. On October 21, net inflows for Ethereum-based ETFs totaled only $20.8 million.
Of these outflows, grayscale’s ETHE fund took $29.58 million. Most Ethereum ETFs suffered, but Ethereum futures and inverse products like ETHA and VANeCK also saw inflows of $4.86 million and $3.92 million in BlackRock’s ETHA and VanEck’s, respectively.
This is because Bitcoin remains so dominant in investors’ sentiments. Bitcoin-based products took in $2.13 billion in inflows for the week, while Ethereum-based products received only $58 million. To illustrate this, consider the difference between Bitcoin and Ethereum ETFs.
Digital Asset Market Sees $2.2 Billion Inflows
The broader digital asset investment market showed optimism, with $2.2 billion inflows over the past week. This is the largest jump since July and indicates more investor confidence in the market.
Expectations of a Republican win in upcoming U.S. elections are mostly to blame for this surge, a result that digital assets feel will be positive. There were $2.3 billion inflows, led by the U.S., followed by Canada, Sweden, and Switzerland, which saw small outflows.
The trend might be profit-taking in non-U.S. markets. Meanwhile, short Bitcoin products also lured $12 million, the biggest since March. Other altcoins like Solana, Litecoin, and XRP gained less than Bitcoin’s dominance.
However, Bitcoin remains the foremost object of investors’ interest, even with the market’s volatility. In this growing market trend, Ethereum and other digital assets remain secondary.
