Spot Bitcoin ETFs Attract $294M Despite Price Drop
Even though the price of Bitcoin fell on Monday, spot Bitcoin exchange-traded funds (ETFs) saw large inflows totaling $294.29 million.
Notably, BlackRock’s IBIT ETF drew inflows totaling $329.03 million.
According to statistics from SoSo Value, BlackRock’s IBIT ETF was a top performer, driving inflows on October 21 with an astounding $329.03 million.
With more than $1 billion in net inflows in the last week alone, the fund has been popular among investors looking to acquire exposure to Bitcoin.
According to Bloomberg’s ETF analyst Eric Balchunas, the spike has helped the IBIT ETF overtake Vanguard’s Total Stock Market ETF in year-to-date inflows and take third place overall.
The market was dominated by BlackRock’s IBIT ETF, although there was also significant activity in other ETFs.
The October 22 inflows of $5.9 million into Fidelity’s FBTC fund contributed to the overall upward trend in investor trust in spot Bitcoin ETFs.
But not every fund profited from this infusion. Bitwise’s BITB, ARK’s ARKB, VanEck’s HODL, and Grayscale’s GBTC were among the rival ETFs, with redemptions totaling more than $40 million.
During the day’s trading, these funds and others needed help luring new investors.
Even when the top cryptocurrency saw a 3.25% drop, from an intraday high of $69,227 to a low of $66,975, investors remained confident in these financial products.
The cryptocurrency market saw significant liquidations due to the price decline; of the $167 million in long liquidations, $40.53 million came from Bitcoin.
Even more lengthy liquidations occurred for Ethereum, the second-largest cryptocurrency, totaling $55.9 million.
Ethereum-based ETF activity had a difficult day, in stark contrast to the robust performance of Bitcoin-focused ETFs.
After three days of inflows, spot Ethereum ETFs saw net withdrawals of $20.8 million on October 21.
The largest withdrawals, totaling $29.58 million, were from Grayscale’s ETHE fund.
Inflows into other Ethereum ETFs, such as VanEck’s ETHV and BlackRock’s ETHA, which witnessed inflows of $3.92 million and $4.86 million, respectively, helped to offset some of the losses.
Despite these encouraging moves, most spot Ethereum ETFs witnessed little to no activity.
Inflows of $2.2 billion for the week, the biggest gain since July, indicated renewed optimism in the larger digital asset investment sector.
Expectations of a Republican win in the next U.S. elections are given credit for increased market sentiment, which may be better for digital assets.
With $2.3 billion, the United States led the inflows, while Canada, Sweden, and Switzerland experienced small outflows, maybe as a result of profit-taking.
While short Bitcoin products witnessed significant inflows of $12 million, the most since March, Bitcoin remained the key driver, securing $2.13 billion.
Meanwhile, altcoins like Solana, Litecoin, and XRP witnessed lesser gains, while Ethereum-based products saw inflows of $58 million.
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