Spot Bitcoin ETFs have proved to have a major impact on the underlying asset’s price movements, which could hint at upcoming rallies for BTC.
This is because investors allocated more than $360 million in net inflows into the US-based ETFs yesterday, the highest levels in over two months.
Demand for Spot BTC ETFs Rises
CryptoPotato has repeatedly reported in the past how investors’ perception and behavior toward the spot BTC ETFs have either propelled price increases or major corrections. In times of growing inflows, bitcoin’s price has risen, and vice-versa.
Investors have been on a shopping spree for the past few weeks. Ever since September 6, there have been only two trading days with net outflows out of 14. This culminated yesterday, with $365.7 million in net inflows entering the financial vehicles – the highest since July 22.
Ark Invest’s ARKB led the pack with $113.8 million, followed by BlackRock’s IBIT ($93.4 million), Fidelity’s FBTC ($74 million), and Bitwise’s BITB ($50.4 million). Only Grayscale’s GBTC saw minor outflows of $7.7 million. Thus, the world’s largest Bitcoin ETF, IBIT, has seen its total AUM grow to north of $21.3 billion.
These inflows have corresponded with a price increase for BTC. Notice that ever since last Wednesday, when the US Fed announced a 0.5% reduction in the key interest rates, investors have been pouring funds into the ETFs.
Within this timeframe, bitcoin’s price has surged from $59,300 to almost $66,000 reached today. This represents an 11% surge in just over a week.
Ethereum ETFs’ Situation
The spot Ethereum ETFs have not enjoyed their time on US stock exchanges the same way their Bitcoin counterparts have. Still, there are some positive signs.
After the major withdrawals during the week when the Fed cut the rates, the situation worsened on September 23, with almost $80 million leaving the funds. However, September 24 and 25 saw $62.5 million and $43.2 million in net inflows, which turned the week around.
Nevertheless, yesterday was another day with minor net outflows ($0.1 million). The majority came from Grayscale’s fund (—$36 million), and Blackrock’s ETHE, as well as Fidelity’s FETH ($15.3 million and $15.9 million, respectively), could not offset the losses.
At the same time, though, ETH’s price has gained more than 14% on a weekly scale and now sits above $2,660.
