The recent surge in Bitcoin ETF inflows has caught the attention of investors and analysts alike.
Bitcoin is older than the fiat stock market when measured by hours of trading.
I discuss this with @philrosenn, along with numerous current events in financial markets.
Full episode on X.
0:00 – Intro
0:49 – Bitcoin resilience vs. stock market
8:07 – Currency debasement &… pic.twitter.com/iEkgbMmy2j— Anthony Pompliano 🌪 (@APompliano) September 12, 2024
On September 10, Bitcoin spot ETFs in the United States attracted nearly $117 million, a staggering 400% increase from the previous day’s $37.29 million. This influx of investment follows eight consecutive days of withdrawals, which had reduced the overall assets under management by more than $1.18 billion.
Fidelity’s FBTC led the charge with $63 million in inflows for two straight days. Grayscale Bitcoin Mini Trust and ARK 21Shares followed suit, with $41 million and $12.7 million, respectively.
Activity on Ethereum picked up significantly this week, with total fees increasing by nearly 60% as people return from holidays. pic.twitter.com/HvJhVWxaqZ
— IntoTheBlock (@intotheblock) September 13, 2024
Despite these promising inflows, the total trading volume for the 12 Bitcoin ETFs dropped 55% to $712 million from $1.61 billion the previous day, prompting caution among investors.
Ethereum ETFs, on the other hand, face a more complex scenario. On September 10, Ethereum spot ETFs had net inflows of $11.4 million, ending a five-day period of heavy outflows. Fidelity’s FETH led with $7 million in inflows, followed by BlackRock’s ETHA with $4.3 million.
Yesterday saw the largest net Bitcoin outflow from exchanges since May, with a net outflow of $750 million.
This signals significant accumulation by $BTC holders pic.twitter.com/dA2Rvv6MGA
— IntoTheBlock (@intotheblock) September 11, 2024
However, the remaining seven Ethereum ETFs showed no inflows. Despite these positive inflows, Ethereum still faces more obstacles.
Bitcoin ETF inflows catch investors’ eye
Recently, WisdomTree withdrew its application for a spot Ethereum ETF with the US Securities and Exchange Commission, following VanEck’s closure of its Ethereum Strategy ETF. These actions suggest a decrease in institutional confidence in Ethereum-based products, with a cumulative net outflow of $562 million in Ether ETFs to date. According to a survey from Gemini, crypto ownership has remained consistent despite market volatility.
In France, ownership surged from 16% to 18%, while 21% of Americans and 18% of Britons reported holding crypto. Conversely, Singapore saw a slight drop from 30% to 26% in ownership. Currently, the total crypto market cap stands at $1.9 trillion.
The global scene of cryptocurrencies is displaying varied patterns. While ownership remains high in major markets like the United States and the United Kingdom, regions like Singapore show signs of declining interest. The market’s recovery hinges on the resilience of long-term investors, as highlighted by Gemini’s research.
These factors, along with regulatory developments and spot ETFs, could drive future expansion. The recent inflows to Bitcoin and Ethereum ETFs hint at a probable shift in market sentiment, even as trading volumes decline and institutional confidence wavers, particularly in Ethereum. The cryptocurrency market remains resilient, bolstered by consistent ownership and the potential for future regulatory developments.
- AMBCrypto.”Will Bitcoin ETF flows turn negative again? What’s causing market jitters”.
- CNN.”Bitcoin ETFs Net $39M Inflows, Ethereum ETFs Outflows Led Solely by Grayscale”.
- Bitcoinist.”Bitcoin ETF Inflows Skyrocket 400%, Setting New Highs – What’s Next?”.