Bitcoin spot ETFs continued their impressive run on October 21, attracting a net inflow of $294 million. This marked the seventh consecutive day of positive inflows, highlighting growing investor confidence in the digital asset.
Leading the charge was BlackRock’s IBIT ETF, which saw an impressive $329 million flow in. Fidelity’s FBTC ETF recorded a smaller inflow of $5.9 million, while VanEck’s HODL ETF experienced an outflow of $7.6 million, according to data from SoSo Value.
The significant inflows indicate a shift in sentiment, with investors increasingly viewing Bitcoin as a valuable asset. This positive trend is being fueled by a combination of factors, including favorable market conditions, declining interest rates, and stable regulatory policies.
Abdul Rafay Gadit, CEO and Founder of Zignaly, believes that the influx of over $1 billion into ETFs signifies growing investor interest and confidence. “As we enter a phase of declining interest rates, liquidity is increasingly flowing towards riskier assets, creating opportunities for higher returns,” he stated in a note to Benzinga. Gadit also emphasizes the role of stable regulatory policies in bolstering market confidence.
While Bitcoin spot ETFs are thriving, Ethereum ETFs exhibited contrasting results. Grayscale’s ETHE saw a net outflow of $29.5 million, reflecting weaker market sentiment for Ethereum. However, BlackRock’s ETHA ETF registered a modest inflow of $4.8 million. Overall, Ethereum spot ETFs posted a total net outflow of $20.7 million.
Looking ahead, Gadit anticipates continued liquidity flowing into markets, particularly in light of the upcoming U.S. elections. “With the upcoming U.S. elections, we expect liquidity to continue flowing into the markets, further driving positive momentum,” he said, expressing optimism for a strong year-end performance across the cryptocurrency space.
Adding to the bullish sentiment, exchanges are reporting a dwindling supply of Bitcoin. This scarcity further strengthens the case for Bitcoin as a valuable asset.
These trends and their implications for the future of digital assets will be explored at the upcoming Benzinga Future of Digital Assets event on November 19. Industry leaders will convene to discuss the impact of liquidity, investor confidence, and market dynamics on the evolution of the digital asset landscape.