Benzinga - by Murtuza Merchant, Benzinga Staff Writer.
Bitcoin (CRYPTO: BTC) spot ETFs on Monday experienced a substantial net inflow of $241 million, marking a significant boost in investor confidence in the cryptocurrency market.
What Happened: The Ark Invest and 21Shares’ ETF (BATS:ARKB) led the charge with an inflow of $68.2812 million, followed closely by BlackRock’s iShares Bitcoin Trust (NASDAQ:IBIT) with $66.3502 million, Fidelity Wise Origin Bitcoin Fund (BATS:FBTC) with $64.01 million, Bitwise’s Bitcoin ETF (BATS:BITB) with $27.98 million and the Grayscale Bitcoin Trust (OTC:GBTC) with $9.3475 million, according to data from SoSo Value.
The recent inflows reflect a growing interest in Bitcoin spot ETFs, as investors respond to favorable market conditions and anticipated interest rate cuts.
According to CoinShares Research, digital asset investment products recorded inflows totaling $932 million for the second consecutive week.
This surge was primarily driven by the lower-than-expected Consumer Price Index (CPI) report, with 89% of the week’s inflows occurring in the last three trading days.
James Butterfill of CoinShares highlighted the significance of these inflows, noting that “Bitcoin prices have recoupled to interest rate expectations,” emphasizing the positive outlook among investors.
The US dominated the inflows, with $1.002 billion pouring into the market.
This trend was unusual for Grayscale, which has seen $16.6 billion in outflows since the January ETF launch, but reported minor inflows totaling $18 million for the first time.
Regionally, Switzerland and Germany also saw minor inflows of $27 million and $4.2 million, respectively, while Hong Kong and Canada experienced outflows totaling $83 million and $17 million.
Bitcoin (CRYPTO: BTC) alone accounted for $942 million of the inflows, with no significant flows into short Bitcoin positions, indicating a broadly positive sentiment among investors.
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The altcoin market also saw minor inflows, with Solana (CRYPTO: SOL), Chainlink (CRYPTO: LINK), and Cardano (CRYPTO: ADA) receiving $4.9 million, $3.7 million, and $1.9 million, respectively.
Ethereum (CRYPTO: ETH) continued to suffer from bearish sentiment over the likelihood of SEC approval for a spot-based ETF, resulting in further outflows of $23 million.
Despite the overall positive trend, blockchain equities have struggled, with outflows in 14 of the 20 weeks this year, totaling $512 million year-to-date.
Why It Matters: These developments come at a pivotal time as the SEC is expected to make a decision on an Ethereum spot ETF this week.
ETF Store President Nate Geraci has indicated that while the SEC might approve the 19b-4 applications, they could delay the approval of the S-1 registration statements due to a reported lack of engagement from some stakeholders.
The increasing inflows into Bitcoin spot ETFs and the broader digital asset market highlight the growing institutional adoption of cryptocurrencies.
Price Action: At the time of writing, Bitcoin is trading at $71,084, up 5.7% over the past 24 hours.
What’s Next: This trend is expected to be a key topic at Benzinga’s Future of Digital Assets event on Nov. 19, where industry leaders, investors, and policymakers will discuss the evolving role of digital assets in the global financial system.
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