In recent news, US spot Bitcoin exchange-traded funds (ETFs) experienced inflows of around $117 million on Tuesday, rebounding from a period of outflows. Fidelity’s Bitcoin Fund (FBTC) led the surge with $63 million in net inflows, bringing its total to $9.5 billion after eight months of trading. With $10.5 billion in Bitcoin, FBTC is now the third-largest Bitcoin ETF, following BlackRock’s iShares Bitcoin Trust (IBIT) and Grayscale’s Bitcoin Trust (GBTC). Grayscale’s Bitcoin Mini Trust and ARK Invest’s Bitcoin ETF also saw strong performances, attracting $41 million and $13 million, respectively. However, BlackRock’s IBIT and other major Bitcoin ETFs did not see any inflows during this period.
The recent inflows into Bitcoin ETFs come after a significant period of outflows, with over $1 billion withdrawn in late August and early September. BlackRock’s IBIT, despite experiencing outflows, remains a dominant force with over $20 billion in assets. In parallel, US spot Ethereum ETFs saw a modest recovery, registering around $11 million in net inflows on Tuesday. Fidelity’s Ethereum Fund (FETH) had an inflow of $7.1269 million, while BlackRock’s iShares Ethereum Trust (ETHA) had an inflow of $4.3101 million, marking the first net inflow after net outflows in the past five days.
Crypto-related ETFs continue to dominate the ETF market, with the top four out of 400 new ETFs launched in 2024 being spot Bitcoin ETFs. Notable offerings include BlackRock’s iShares Bitcoin Trust, Fidelity’s Wise Origin Bitcoin Fund, the ARK 21Shares Bitcoin ETF, and Bitwise’s Bitcoin ETF Trust. The iShares Ethereum Trust ETF also became the seventh-largest ETF launch in 2024, surpassing $1 billion in inflows as of August. Digital asset investment products have seen significant outflows totaling $726 million over the past week, matching the largest recorded outflow seen in March of this year.
Bitcoin and Ethereum faced losses, with outflows totaling $643 million and $98 million, respectively. Short-Bitcoin products saw minor inflows of $3.9 million, indicating some investors are hedging against further price drops in the leading cryptocurrency. The Grayscale Ethereum Trust also saw outflows contributing to Ethereum’s overall losses. Historically, September has been a challenging month for Bitcoin as its performance tends to weaken during this period, a phenomenon known as “Rektember” in the cryptocurrency community. In contrast, “Uptober” refers to the typically positive price action seen in October.
