Bitcoin (BTC) ETF Inflows Surge This Week, Attracting $2.68 Billion in New Investments

This implies that more and more institutional and retail investors are looking to get into Bitcoin exposure. This corresponds to a rise in Bitcoin ETF inflows

Bitcoin ETFs have seen a strong surge in investor interest this week, with a net total of $2.68 billion.

This measure indicates that more institutional and retail investors are seeking to gain exposure to Bitcoin.

It corresponds to rising Bitcoin ETF inflows due to positive market sentiment from Bitcoin’s stable price development. The uptick might have enhanced investors’ confidence regarding these funds.

Blackrock’s iShares Bitcoin ETF (IBIT)

Among the various Bitcoin ETFs, iShares Bitcoin ETF, created by Blackrock, has seen outstanding contributions, amounting to $240.1 million.

The iShares Bitcoin ETF, IBIT, holds a market cap of $54 billion, and its volume is $1.5 billion, making it the largest Bitcoin ETF in terms of market cap.

Strategy’s Michael Saylor has recently asserted that IBIT can become the “biggest ETF in the world” within a decade.

Consequently, IBIT has always been a major player in the Bitcoin ETF market. Recent developments continue to indicate that institutional investors, in particular, are increasingly willing to put their hands wherever Bitcoin adds value as an inflation hedge and counter to market volatility.

Other Bitcoin ETFs, such as ARK’s Bitcoin ETF (ARKB), Fidelity’s Bitcoin ETF (FBTC), and Grayscales’s Bitcoin ETF (GBTC), have also received many contributions.

In recent months, Bitcoin’s price has increased, and the value of these ETFs has also skyrocketed.

Ethereum ETFs Show Slower Growth

In contrast, Ethereum ETFs have also seen the attraction of investors, albeit more slowly than Bitcoin ETFs.

Net inflows on Ethereum ETF reached $104.01 million. The main reason was Fidelity’s Ethereum fund (FETH), which had 19,235 ETH and was about $34.49 Million.

The total amount of ETH FETH now held is 382,760 ETH (worth $686,29 million). This illustrates Fidelity’s strong standing in the Ethereum ETF market. It also shows the rising institutional demand for Ethereum as an essential player.

However, Grayscale’s Ethereum Trust (ETHE), the largest Ethereum ETF, has a different trend. The hefty ETH Holdings of 1,152,763 ETH have not prevented the accumulated losses of 16,221 ETH (equivalent to $28,439 ETH in the past week).

The decline in this outflow may be due to a move away from investors’ preferences or strategic moves on the part of the fund.

Yet, Grayscale’s Ethereum Trust is still one of the largest Ethereum ETFs. Its holdings could be seen as a statement of growing institutional interest in Ethereum.

The smaller Ethereum ETFs include the Franklin Ethereum ETF (EZET) and VanEck Ethereum ETF (ETHV), the former of which has seen slightly smaller contributions.

ETHV held no net change with its holdings, whereas EZET put on 888 ETH. These funds show the ongoing capital flows to Ethereum, but still not that of Bitcoin.

Bitcoin and Ethereum ETF Comparison

The recent data highlights the stark difference between the inflows of Bitcoin and Ethereum ETFs. Bitcoin remains the leading cryptocurrency in terms of ETF inflows, attracting the preference of investors who want to invest in digital assets.

While Bitcoin continues to receive a lot of attention, Ethereum hasn’t received the same type of volume inflows.

Nevertheless, the growing interest in Ethereum-based ETFs can be explained due to Ethereum’s increasing use case in decentralized (dApps) and smart contracts, and also the fact that the future for Ethereum is still auspicious.