In the United States, the appetite for spot Bitcoin and Ethereum exchange-traded funds (ETFs) is on the rise, reflecting robust net inflows. As of October 24, 2024, the total net inflow into these Bitcoin ETFs has reached $187.5 million, while Ethereum ETFs have seen a more modest $2.3 million in inflows.
What’s Driving Bitcoin ETF Growth?
There has been a notable increase in the performance of Bitcoin ETFs, with all 11 registered ETFs posting positive net inflows for two consecutive days. Leading the charge is BlackRock’s iShares Bitcoin Trust (IBIT), which has become the top performer for eight days straight, attracting 2,436 BTC worth roughly $165 million recently. Currently, the IBIT manages a total of 399,355 BTC, valued at $27.16 billion, accounting for over 2% of Bitcoin’s total supply.
Why are Ethereum ETFs Lagging Behind?
While spot Ethereum ETFs have seen some positive inflows, the growth has been limited. Only BlackRock’s iShares Ethereum Trust (ETHA) recorded any net inflow, while the other eight Ethereum ETFs experienced stagnation. The cumulative net inflow for Ethereum ETFs stands at a negative $478 million following 67 trading days.
The demand for Bitcoin ETFs is escalating, with projections indicating that these funds could amass nearly 1 million BTC within 10 months. Current holdings amount to 967,459 BTC, and if this trend continues, ETF reserves could soon exceed the 1.1 million BTC held by Bitcoin’s creator, Satoshi Nakamoto. BlackRock’s ETF alone currently has 396,922 BTC, while Binance manages 636,000 BTC for its clients.
- Spot Bitcoin ETF inflows reached $187.5 million.
- BlackRock’s iShares Bitcoin Trust leads in net inflows.
- Eight Ethereum ETFs show no growth in net inflows.
- Projected Bitcoin ETF holdings may surpass Satoshi Nakamoto’s.
The continuous influx of funds into Bitcoin ETFs suggests a strong market interest, while Ethereum ETFs struggle to keep pace. This divergence highlights a significant trend in investor preferences within the cryptocurrency space, setting the stage for future developments in both assets.
