Crypto ETFs Surge with $3.4B Inflows, Led by Bitcoin

Key Takeaways
In recent days, crypto ETFs (Exchange Traded Funds) have seen a significant capital inflow totalling USD 3.4 billion. Spot Bitcoin ETFs were particularly in demand, receiving USD 591.2 million in new deposits alone. Notably, there has been strong participation from institutional investors such as hedge funds, as well as long-term crypto holders, known as HODLers. Despite positive price movements in Bitcoin and Ethereum, market sentiment remains mixed.
Focus on Bitcoin ETFs
BlackRock’s spot Bitcoin ETF IBIT was the clear winner, with an inflow of USD 970.9 million. In contrast, Fidelity’s FBTC and Grayscale’s GBTC saw outflows of USD 86.9 million and USD 42.7 million, respectively. Despite these outflows, GBTC remains the highest-volume ETF in the Bitcoin segment: according to Nate Geraci, President of ETF Store, GBTC achieved an estimated trading volume of USD 268 million – more than all eleven other spot Bitcoin ETFs combined.
Ethereum ETFs Gaining Momentum
While Bitcoin ETFs continue to take centre stage, Ethereum ETFs are beginning to show momentum. A total of USD 64.1 million flowed into these products. BlackRock’s ETHA led the way with USD 67.5 million. Bitwise’s ETHW, on the other hand, recorded an outflow of USD 3.4 million. The remaining Ethereum ETFs remained largely stable.
Who Is Driving the ETF Boom?
The recent inflows can be attributed to two main players: hedge funds and HODLers. Institutional investors such as Millennium Management and Point72 are taking advantage of arbitrage opportunities and providing additional liquidity. At the same time, seasoned crypto investors are holding their positions, lending stability to the market. This combination of short-term strategies and long-term conviction is strengthening confidence in crypto ETFs and supporting their integration into traditional portfolios.
Price Development of Bitcoin and Ethereum
Bitcoin was recently trading at USD 94,985.44 – an increase of 0.5% over 24 hours. Ethereum rose by 1.22%, reaching USD 1,830.28. However, technical indicators present a mixed picture: Bitcoin’s Relative Strength Index (RSI) stood at 51, indicating neutral momentum. Ethereum showed a more bearish tendency with an RSI of 43. This suggests the possibility of sideways movement or increased volatility in the near future.
Our Assessment
The latest developments demonstrate that crypto ETFs are increasingly being viewed as a legitimate asset class – by both institutional and retail investors. The strong capital inflows point to growing confidence in digital assets. Nevertheless, caution is still warranted: technical analysis does not yet signal a clear direction. Those investing in ETFs should continue to monitor market movements closely and consider both short-term opportunities and long-term trends.
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