Bitcoin ETFs Dominate Weekly Inflows with $1B

Nearly $1 billion was invested in Bitcoin ETFs last week. BlackRock’s IBIT had more investments than the sector, indicating a significant contribution.

Last week, the US-listed Bitcoin spot ETFs experienced a new high in institutional investment, with nearly $1 billion in the funds. BlackRock’s iShares Bitcoin Trust (IBIT) contributed the lion’s share of the total investment, according to blockchain tracking platform SoSoValue.

This week represents the third consecutive week of positive inflows for the products approved by the United States Securities and Exchange Commission (SEC) in January of this year and entered the market.

BlackRock Reinforces Institutional Confidence in Crypto ETFs

Bitcoin spot ETFs have experienced inflows exceeding $3 billion since the beginning of October, emphasizing the appeal of Bitcoin as a critical asset for institutional investors, particularly in light of the increasing regulatory acceptance of crypto-related products in traditional finance.

The eleven Bitcoin ETFs approved last week collectively contributed $997.7 million to the market. The products experienced the highest daily contribution of $402.08 million on Friday, October 25, when most inflows occurred.

On the same day, BlackRock’s IBIT attracted $291.96 million daily inflow, accounting for over half of the total investment. The company’s cumulative inflows increased to $23.99 billion due to its strong performance on Friday. The fund’s weekly inflow exceeded $1 billion.

Other Bitcoin ETFs, including Fidelity’s FBTC, also experienced substantial performance last week, attracting over $71 million in net inflows. The product’s cumulative net inflow is $10.38 billion, as indicated by SoSoValue.

Furthermore, the positive inflows last week were bolstered by the contributions of Ark & 21Shares’ ARKB, Bitwise’s BITB, Grayscale’s GBTC, and VanEck’s HODL funds, suggesting that demand is widespread across various providers.

Ethereum Spot ETFs are experiencing persistent outflows

Although Bitcoin spot ETFs experienced substantial inflows, Ethereum-focused products did not replicate this trend. An outflow of $24.45 million was recorded last week by Ethereum spot ETFs, which marked their 11th consecutive week of negative returns. SoSoValue’s data indicates that the total net assets of Ethereum ETFs are $6.82 billion, which is approximately 4.93% of Bitcoin’s total market share, as opposed to $65.25 billion for Bitcoin.

A recent report from Kaiko Research has identified a lack of institutional appeal as a significant factor contributing to the persistent outflows from Ethereum ETFs since their launch.

Even though the open interest in Bitcoin CME futures has reached consecutive all-time highs, which suggests a strong institutional interest, the open interest in Ether futures on the CME has remained notably low at only 7,300 contracts, valued at approximately $970 million, according to the research.

The firm posits that this discrepancy indicates a less mature market for Ethereum, suggesting that institutional investors are significantly less engaged with ETH futures than their Bitcoin counterparts.