This week saw a significant rise in investor interest in Bitcoin ETFs, with a total net of $2.68 billion.
This means that an increasing number of institutional and retail investors are looking to invest in Bitcoin.
This aligns with the rise in Bitcoin ETF inflows thanks to positive market sentiment resulting from Bitcoin's price stability. Perhaps this increase has boosted investor confidence in these funds.
Large daily inflows from BlackRock
BlackRock's iShares Bitcoin ETF saw notable inflows amounting to $240.1 million.
The market capitalization of the IBIT fund is $54 billion, with a size of $1.5 billion, making it the largest Bitcoin trading fund by market capitalization.
Michael Saylor of Strategy recently confirmed that the IBIT fund could become "the largest exchange-traded fund in the world" within a decade.
Source: X
As a result, IBIT has long been a key player in the Bitcoin exchange-traded fund market. Recent developments indicate that institutional investors, in particular, are increasingly willing to invest anywhere Bitcoin adds value, as a hedge against inflation and to counter market volatility.
Other Bitcoin ETFs have also received numerous contributions, including ARKB, Fidelity's FBTC, and Grayscale's GBTC.
In recent months, the price of Bitcoin has risen, and the value of these exchange-traded funds has significantly increased.
Ethereum ETFs show steady growth
In contrast, Ethereum ETFs have also attracted investor interest, albeit at a slower pace than Bitcoin ETFs.
The net inflows to the Ethereum exchange-traded fund amounted to $104.01 million. The primary contributor was Fidelity's Ethereum fund (FETH), which acquired 19,235 Ethereum, with investments valued at approximately $34.49 million.
The total value of ETH FETH currently held is 382,760 ETH (worth $686.29 million). This demonstrates Fidelity's strong position in the Ethereum exchange-traded fund market. It also shows the increasing institutional demand for Ethereum as a key player.
Nevertheless, Grayscale's Ethereum Trust (ETHE), the largest exchange-traded fund for Ethereum, had a different trend. The massive holdings of Ethereum, totaling 1,152,763 Ethereum, did not prevent the accumulated losses of 16,221 Ethereum (equivalent to $28,439 of Ethereum over the past week).
The reason for this external outflow may be attributed to shifts in investor preferences or strategic moves by the fund.
Nevertheless, Grayscale's Ethereum Trust remains one of the largest Ethereum exchange-traded funds. Its holdings can be seen as evidence of growing institutional interest in Ethereum.
Smaller Ethereum ETFs include the Franklin Ethereum ETF (EZET) and the VanEck Ethereum ETF (ETHV), with the former seeing slightly smaller inflows.
ETHV did not register any net change in its holdings, while EZET invested 888 ETH. These funds show ongoing capital inflows to Ethereum, but do not show capital inflows to Bitcoin.
Comparison between Bitcoin and Ethereum exchange-traded funds
Recent data highlights the significant difference between the inflows of Bitcoin and Ethereum exchange-traded funds (ETFs). Bitcoin remains the leading cryptocurrency in terms of ETF inflows, attracting the attention of investors looking to invest in digital assets.
While Bitcoin still receives significant attention, Ethereum has not seen the same kind of volume inflows.
However, the increasing interest in Ethereum-based ETFs can be attributed to the growing use of Ethereum in decentralized applications (dApps) and smart contracts, as well as the fact that Ethereum's future still looks promising.
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