U.S. spot Bitcoin exchange-traded funds (ETFs) witnessed a significant surge in net inflows. Bitcoin ETFs saw $235.19 million in capital last Monday, after two days of being brought in. This trend reflects a growing investor interest in the market with conditions going haywire.
The FBTC ETF from Fidelity led the inflow charge, which brought in $103.68 million. The largest spot Bitcoin ETF in terms of assets, BlackRock’s IBIT, brought in $97.88 million following close. This is a strong recovery after no flows at the fund last Friday.
Other ETFs, including Fidelity and BlackRock, also reported big inflows. New investments for Ark and 21Shares’ ARKB saw $12.63 million, while BITB drew $13.09 million from Bitwise’s BITB.
A diverse interest emerged from VanEck’s $5.37 million HODL and Invesco’s $2.53 million BTCO, demonstrating products that become alternatives as investors step back from the top, most significant funds for settling in a steady pool.
Bitcoin ETFs Show Increased Activity Amid Price Drops
Bitcoin ETFs traded a combined $1.22 billion on Monday, following a $1.19 billion volume reported on Friday. Overall, this demonstrates growing market activity with positive data inflow.
On the other hand, U.S. spot Ethereum ETFs saw a stagnant inflow period. On Monday, these funds reported $0 inflows seven days after collecting $7.39 million. However, the combined trading volume for the nine Ethereum ETFs took a tumble, dropping to $118.43 million from $148.01 million on Friday.
Bitcoin and Ethereum prices dropped in light of mixed ETF performance. Bitcoin dropped 2.65% to $62,539, and Ethereum slid 3.45% to $2,430. Despite the low prices, the inflow of capital into Bitcoin ETFs reflects a divergence of sentiment towards the two leading cryptocurrencies.
Digital Asset Products Face $147 Million Outflows
Last week, digital asset investment products experienced outflows of $147 million due to rising investor caution. Overall, the market has changed very little. Strong economic indicators have made people expect less-than-expected interest rate cuts.
Despite this, exchange traded products (ETPs) trading volumes rose by 15% to $10bn. The increase is the opposite of the broader crypto market’s lower activity levels. Last week, $159 million in outflows from Bitcoin were seen, which has been central to this movement.
Specifically, $2.8 million flowed into products explicitly meant to short Bitcoin. Investor hedging is likely behind this activity in the market under uncertain conditions. Similarly, outflows from Ethereum picked up as interest faded, with $29 million leaving the protocol.
HBO Documentary Sparks Anticipation for Bitcoin
In contrast to Bitcoin and Ethereum, multi-asset investment products have continued to outperform. Inflows of $29 million into these products represented the 16th consecutive weekly increase. Investors wanting a diversified product have spent $431 million since June on multi-asset products.
Market analysts are starting to jump on the “Uptober” narrative. Interest in Bitcoin has been renewed by strong Non-Farm Payroll (NFP) data. Also, Bitcoin is getting more anticipation for an upcoming HBO Bitcoin documentary, which is good tidings.
The bullish outlook for Bitcoin in the 4th quarter is presented by options flow. December BTC call spreads are in a hot zone, with price targets of $75,000 and $95,000. The result is a rather optimistic bet amongst investors on a strong October performance as market dynamics shift.
