Bitcoin ETFs Gain Popularity as Investors Pour in $39 Million

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Bitcoin spot exchange-traded funds (ETFs) in the U.S. have shown mixed performances recently. They recorded a net inflow of $39.02 million, bouncing back from the negative flows seen the previous day. 

Ark and 21Shares’ ARKB led the charge with $18.34 million in inflows, while Fidelity’s FBTC followed with $11.47 million. Meanwhile, Ethereum’s spot ETFs continued to struggle, seeing outflows of $20.14 million.

Bitcoin Spot ETFs See Strong Recovery While Ether ETFs Lags

After experiencing negative inflows on Wednesday, U.S. spot Bitcoin ETFs rebounded with net inflows of $39.02 million on Thursday. 

According to Sosovalue’s data, the largest inflow came from ARKB, an ETF managed by Ark and 21Shares. It attracted $18.34 million in a single day. 

Other funds also saw positive movements. Fidelity’s FBTC brought in $11.47 million, and Grayscale’s Bitcoin Mini Trust recorded an inflow of $5.18 million.

Also, VanEck got over $.4 million, Franklin Templeton recorded an inflow of $3.38 million, while Bitwise’s BITB fund saw $2.22 million in new investments. 

However, Grayscale’s GBTC was the only fund to record outflows, with $6.51 million leaving the fund. The overall sentiment around Bitcoin ETFs remains strong, especially as Bitcoin hovers around the $58,000 mark.

While Bitcoin ETFs enjoyed a recovery, Ethereum’s spot ETFs struggled with outflows. Ethereum ETFs reported a net outflow of $20.14 million on Thursday, marking the second consecutive day of outflows. 

The entire outflows for Ethereum ETFs came from Grayscale’s ETHE fund. The remaining eight Ether ETFs recorded zero flows.

Trading volume for Ethereum ETFs was also down. Thursday’s total volume reached $106.14 million, down from the $126.22 million recorded the previous day. 

Investors seem cautious, especially as Ethereum shows no clear signs of price recovery.

Bitcoin Maintains Strength Around $58,000

Despite some volatility, Bitcoin has managed to maintain its price around the $58,000 level. According to CoinMarketCap, Bitcoin saw a slight dip of 0.6% in the past day, trading at $58,300, with a 3.81% increase over the past week.

This comes after a more significant drop last Friday when Bitcoin’s price fell below $53,000 following weak U.S. non-farm payroll data.

Investors remain cautious but optimistic about both Bitcoin and Ethereum. Many are closely watching the FOMC meeting, expecting a potential interest rate cut that could benefit cryptocurrencies. 

According to the CME Group’s FedWatch Tool, there’s a 57% chance the Federal Reserve will lower interest rates by 25 basis points.

Bitcoin Fear and Greed Index is 32 — Fear
Current price: $58,130 pic.twitter.com/YOUxqTfXRc

— Bitcoin Fear and Greed Index (@BitcoinFear) September 13, 2024

However, Bitcoin’s fear and greed index is currently at 32, indicating the market is in the fear zone.

This reading explains why investors are cautious, which is evident in the mixed performance seen in the crypto ETF market. Despite the uncertainty, some investors remain optimistic, hoping for a more profound market recovery soon.