- U.S. spot Bitcoin ETFs saw $253.6M inflows on Oct. 11, led by Fidelity’s $117.1M, breaking a three-day outflow streak.
- Grayscale Bitcoin Trust recorded a $22.1M outflow on the same day, while overall spot Bitcoin ETF inflows offset previous losses.
- Seven out of nine U.S. spot Ether ETFs had zero inflows on Oct. 11, with the sector facing investor caution and uncertain demand.
United States-based spot Bitcoin exchange-traded funds (ETFs) experienced a significant influx of $253.6 million in net inflows on October 11. This surge in investments followed three consecutive days of net outflows, reflecting a shift in investor sentiment.
Consequently, the latest data suggests a renewed interest in Bitcoin ETFs, especially as Bitcoin prices climbed to a local high before a slight correction. The market dynamics surrounding these funds have sparked curiosity about their potential impact on the broader cryptocurrency market.
Fidelity and ARK 21Shares Lead ETF Inflows
Notably, Fidelity’s Wise Origin Bitcoin Fund led the pack with a net inflow of $117.1 million, highlighting strong investor confidence in the fund. ARK 21Shares Bitcoin ETF also made a notable contribution, bringing in $97.6 million in new investments. Data from Farside Investors emphasized the role of these two funds in driving the overall inflows.
Additionally, Bitwise Bitcoin ETF recorded its largest single-day inflow in 11 trading days, reaching $38.8 million. Invesco Galaxy and VanEck Bitcoin ETFs also saw positive movement, albeit on a smaller scale.
Conversely, some prominent players in the market did not share the same momentum. BlackRock’s iShares Bitcoin Trust (IBIT) and other ETFs issued by Franklin Templeton, Valkyrie, and WisdomTree reported zero inflows for the day.
Hence, this marked the third time that BlackRock’s IBIT remained stagnant during a large inflow day. Despite the mixed performance among different issuers, the overall inflows managed to offset the $140 million that exited Bitcoin ETFs between October 8 and 10.
Grayscale Bitcoin Trust Faces Continued Outflows
However, while spot Bitcoin ETFs experienced a revival in inflows, the Grayscale Bitcoin Trust (GBTC) continued to struggle. On October 11, it recorded another outflow of $22.1 million, adding to its recent losses.
Besides, GBTC’s outflows have been a persistent trend, even as other Bitcoin ETFs see inflows. The recent $253.6 million inflows into spot Bitcoin ETFs brought some stability, but it could not entirely mitigate the ongoing challenges faced by Grayscale.
Subsequently, the renewed inflows followed Bitcoin’s price surge to $63,360 on October 11, before a slight pullback to $62,530, as per CoinGecko data. This price movement may have influenced investor behavior, prompting increased inflows into certain funds.
Despite the challenges, BlackRock remains the leader in the spot Bitcoin ETF space with $21.7 billion in total net inflows. Fidelity’s recent performance has positioned it to potentially reach the $10 billion milestone in the near future, just $15 million away. ARK 21Shares and Bitwise are the only other issuers with over $2 billion in net inflows.
Spot Ether ETFs Continue to Struggle
However, while spot Bitcoin ETFs showed signs of recovery, the same cannot be said for spot Ether ETFs. On October 11, seven out of nine U.S.-based spot Ether ETFs recorded zero inflows, marking the third occurrence of this trend in the past five trading days. The combined net outflow for spot Ether ETFs stood at $0.1 million, with Fidelity’s Ethereum Fund being the only contributor with positive inflows.
More so, Grayscale Ethereum Trust also faced challenges, losing $8.7 million on the same day. Meanwhile, spot Ether ETFs issued by 21Shares, VanEck, and Invesco continued their streak of eight consecutive days without inflows.
As a result, market observers attribute the lack of demand for spot Ether ETFs to several factors, including uncertain market conditions and investor caution. This sentiment has been further amplified by the ongoing regulatory concerns in the United States, as well as broader geopolitical uncertainties.
