Bitcoin and Ethereum ETFs See Fresh Inflows, But Market Sentiment Remains Mixed

Fresh inflows for Bitcoin and Ethereum spot-traded funds (ETFs) in the United States suggest a probable change in market mood.

Fresh inflows for Bitcoin and Ethereum spot-traded funds (ETFs) in the United States suggest a probable change in market mood.

Bitcoin ETFs registered notable investment flows on September 10, thus undoing a run of withdrawals. However, Ethereum ETFs encountered more difficulties despite stopping their five-day outflow streak.

Together with worldwide crypto ownership statistics, these inflows paint a complicated picture of future market direction.

Key Takeaways

Institutions seemed to be returning to Bitcoin as evidenced by the ETF inflows, despite the total trading volume decreasing.

The crypto ownership rates in France, the United States, the United Kingdom, and Singapore displayed varying trends.

Despite the inflows, the SEC’s continuous rejections of spot Ethereum ETF applications and VanEck’s closure of its Ether ETF highlighted the challenges faced by Ethereum-based products.

Bitcoin Spot ETFs Lead the Way

According to data, on September 10, Bitcoin’s spot ETFs attracted nearly $117 million — a massive 400% increase — over the $37.29 million recorded the day before. This development follows eight straight days of withdrawals, which had pushed back the overall assets under management by more than $1.18 billion.

With $63 million in inflows, Fidelity’s FBTC led for two straight days, followed by Grayscale Bitcoin Mini Trust and ARK 21Shares, with $41 million and $12.7 million, respectively.

The total trading volume for the 12 Bitcoin ETFs tumbled 55% to $712 million with inflows from $1.61 billion the previous day. While the inflows might look promising, the drastic decline in trading activity does merit some investor caution.

Interestingly, these figures are in sync with the 2024 Global State of Crypto study from Gemini, which indicates that crypto ownership has been consistent despite the volatility in the markets. Whereas France experienced a surge from 16% to 18%, the survey observed that 21% of Americans and 18% of Britons were holding crypto. In contrast, Singapore recorded a slight drop from 30% to 26% in ownership.

Ethereum Spot ETFs Face More Challenges

The scenario for Ethereum ETFs is less clear-cut. Ethereum spot ETFs had net flows of $11.4 million on September 10, thus breaking a five-day run of heavy outflows. However, the seven Ether ETFs left showed no net flows.

Fidelity’s FETH led the pack with $7 million in inflows, followed by BlackRock’s ETHA with $4.3 million. Still, the seven Ether ETFs left showed no flows.

While the inflows are positive, indicating a shift from outflows, Ethereum continues to face more difficulties. After VanEck announced the closing of its ETF, the company also withdrew its application for a spot Ethereum ETF with the SEC. These actions, when viewed in conjunction with a cumulative net outflow of $562 million in Ether ETFs to date, suggest a drop in institutional confidence in Ethereum-related products.

Varying Trends in Global Crypto Penetration

The scene of cryptocurrencies worldwide is displaying various patterns. The Gemini study shows that in major markets like the United States and the United Kingdom, a significant portion of the population still owns cryptocurrencies. However, in some regions, like Singapore, there are indications of declining interest.

These elements, in addition to regulatory development and spot ETFs, could also propel future expansion. However, the sustainability of long-term investors’ interest will ultimately determine the market’s recovery.

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