Originally published on: August 21, 2024
In a remarkable streak, United States spot Bitcoin exchange-traded funds (ETFs) have sustained positive flows for eight out of the past ten consecutive trading days. On Aug. 20, these ETFs saw a combined inflow of $88 million, marking the highest figure in a two-week period, according to initial data from Farside Investors.
Ishares Bitcoin Trust Dominates Inflows
BlackRock’s iShares Bitcoin Trust (IBIT) emerged as the front runner with a notable inflow of $55.4 million on Aug. 20, bringing the total net inflow for the product since its launch in January to an impressive $20.5 billion. IBIT has outperformed industry veteran Grayscale in terms of assets under management (AUM) and has maintained a solid streak without any outflow day since May 1, accumulating tremendous investor confidence along the way.
ARK 21Shares Bitcoin ETF (ARKB) also recorded a significant inflow of $51.9 million on the same day, establishing itself as a strong player in the ETF market. Conversely, the Grayscale Bitcoin Trust (GBTC) experienced a net outflow of $12.8 million, while the Bitwise Bitcoin ETF (BITB) witnessed minor net outflows of $6.5 million. Other funds remained neutral with zero flows during this period.
Hedge Funds Show Strong Interest in Bitcoin ETFs
Recent reports highlight that 60% of the largest hedge funds in the United States have capitalized on Bitcoin ETFs, indicating a growing trend in institutional investment exposure to digital assets. This surge in interest could potentially reshape the landscape of traditional investment strategies and unlock new avenues for market growth and diversification.
Ether ETFs Encounter Outflows Amidst Bitcoin Boom
In contrast to the positive momentum in Bitcoin ETFs, spot Ether ETFs have faced challenges with outflows over the past few trading days. On Aug. 20, the newly launched spot Ether ETFs collectively posted net outflows of $6.5 million, marking the fourth consecutive day of negative flows, as reported by Farside Investors.
BlackRock’s iShares Ethereum Trust (ETHA) managed to secure $26.8 million in net inflows during this period. However, it fell short in surpassing the $37 million net outflow from Grayscale’s Ethereum Trust (ETHE), signaling a dynamic shift in investor sentiment towards different digital assets.
Ethereum’s Growth and Impactful Moments
Taking a broader view of the blockchain landscape, Ethereum has solidified its position as the second-largest blockchain, driven by a series of groundbreaking developments throughout its history. From the launch of Ethereum to its latest milestones, the blockchain’s evolution continues to shape the digital ecosystem and redefine possibilities in decentralized technologies.
By keeping a close eye on the evolving trends in Bitcoin and Ether ETFs, investors can gain valuable insights into the shifting dynamics of the digital asset market and position themselves strategically for potential growth opportunities.