Bitcoin ETFs Witness Record-Breaking Inflows, Ethereum ETFs Hit October High Amid Bullish Sentiment
The world of Bitcoin ETFs saw a massive surge on Monday, with a staggering $555.8 million flowing into these funds. This marks the highest single-day inflow since July and highlights a growing confidence in Bitcoin as an asset class. Out of the 12 Bitcoin ETFs tracked, 10 reported net inflows, showcasing a strong collective trend.
Leading the charge was the Fidelity Wise Origin Bitcoin Fund, attracting a hefty $239.25 million. The Bitwise Bitcoin ETF followed closely, with $100 million pouring into its coffers. BlackRock’s iShares Bitcoin Trust, the largest spot bitcoin ETF by net assets, reported $79.5 million in net inflows. Other noteworthy ETFs, including ARK 21Shares’ Bitcoin ETF and Grayscale Bitcoin Trust, also recorded significant inflows.
This surge in inflows is not limited to Bitcoin. Ethereum ETFs also experienced a record influx for October, with a total of $17.07 million pouring in. While this is a positive sign for Ethereum, it is important to note that since their launch, Ethereum ETFs have seen a cumulative net outflow of $541.82 million.
Why the Surge in Inflows?
The driving force behind this remarkable inflow is a growing bullish sentiment among ETF investors. A recent Schwab Asset Management study reveals that an impressive 75% of ETF investors are confident that their portfolios can withstand a deep recession or unexpected market shocks. This confidence is further solidified by the fact that ETFs now represent 27% of ETF investor portfolios, with a significant 65% planning to increase their ETF investments in the coming year.
Furthermore, the political landscape, with a perceived shift towards pro-crypto sentiment, is playing a significant role. Data from Polymarket shows that Donald Trump, known for his pro-crypto stance, has a 57% probability of winning compared to 43% for Kamala Harris. This potential change in leadership could bring about a more favorable environment for cryptocurrencies, further driving investments.
What’s Next for Bitcoin and Ethereum ETFs?
The impact of Bitcoin as an institutional asset class will be a key focus at Benzinga’s upcoming Future of Digital Assets event on November 19. This event promises to provide insights into the future of digital assets and how they will shape the financial landscape.
The recent surge in inflows into Bitcoin and Ethereum ETFs signals a positive trend for these cryptocurrencies. With growing investor confidence, a shift in political winds, and a robust ecosystem of ETFs, the future of these digital assets appears bright.