Bitcoin ETF Inflows on the Decline

On September 16, 2024, Bitcoin exchange-traded funds (ETFs) in the U.S. saw a significant reduction in net inflows compared to the previous week. After reaching a total of $263 million in inflows, the net flow dropped sharply to $12.8 million, coinciding with a decline in Bitcoin’s price over the weekend. Despite this drop, certain ETFs continued to gain traction, including those managed by prominent institutions such as BlackRock and Fidelity.

BlackRock’s Bitcoin ETF (IBIT) led the way with inflows of $15.8 million, marking a recovery for the fund after 13 consecutive days without positive net flows. Other Bitcoin ETFs such as Fidelity (FBTC) and Franklin (EZBC) followed with inflows of $5.1 million and $5 million, respectively.

🇺🇸 Spot ETF: 🟢$12.8M to $BTC and 🔴$9.4M to $ETH
🗓️ Sep 16, 2024

👉 The net flow of US BTC ETFs dropped sharply from $263M last week to $12.8M yesterday as the #Bitcoin price declined over the weekend.

👉 Nonetheless, #BlackRock (IBIT) finally saw an inflow again after 13 days… pic.twitter.com/s8t56WHVK4

— Spot On Chain (@spotonchain) September 17, 2024

While Bitcoin ETFs managed to maintain positive inflows, Ethereum-focused ETFs saw a different story, registering net outflows of $9.4 million. Grayscale’s Ethereum ETF (ETHE) accounted for the largest portion of this outflow, losing $13.8 million in assets. Bitwise’s Ethereum ETF (ETHW) also experienced a decline, shedding $2.1 million in value. On the positive side, Spot-on-chain shows that BlackRock’s Ethereum ETF (ETHA) gained $4.2 million, while Grayscale’s mini Ethereum ETF saw inflows of $2.3 million.

Market Conditions and the Broader Context

The sharp drop in ETF inflows for both Bitcoin and Ethereum could be attributed to the recent decline in cryptocurrency prices over the weekend. Bitcoin’s price saw a dip, contributing to a more cautious investment environment. However, inflows into BlackRock and Fidelity ETFs suggest that investors continue to show confidence in well-established funds despite overall market volatility.

The net change in Bitcoin ETFs at $12.8 million, although significantly lower than the previous week, still reflects continued interest, especially as large institutions like BlackRock manage to regain inflows. Ethereum, on the other hand, saw more pronounced losses as investors pulled back from major funds, particularly those from Grayscale and Bitwise.

The divergence in inflows between Bitcoin and Ethereum ETFs reflects shifting investor sentiment in the market. While Bitcoin funds experienced a minor rebound, Ethereum ETFs suffered heavier outflows. As the broader cryptocurrency market faces uncertainty, it remains to be seen how these funds will perform in the coming days.

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