New inflows into bitcoin and ethereum exchange-traded funds (ETFs) in the United States suggest a likely shift in market sentiment. bitcoin ETFs saw notable investment inflows on Sept. 10, thus breaking a streak of withdrawals. While presenting different issues, ethereum ETFs also halted their five-day streak of outflows.
These inflows come at a time when institutional interest in cryptocurrencies remains mixed. ethereum appears to be losing ground even as bitcoin is attracting more money. Coupled with cryptocurrency ownership statistics around the world, this pattern paints a complicated picture of the market’s future direction.
bitcoin-based ETFs lead the way
btc-spot” target=”_blank” rel=”noopener nofollow”>Data-drivenOn September 10, bitcoin spot ETFs attracted nearly $117 million, which is a massive 400% increase from $37.29 million recorded the day before. This development comes after eight consecutive days of withdrawals, which had pushed the total assets under management back by more than $1.18 billion.
Source: btc-spot" target="_blank" rel="noopener nofollow">SoSoValue.
With $63 million in inflows, Fidelity’s FBTC led for two consecutive days, followed by Grayscale bitcoin Mini Trust and ARK 21Shares, with $41 million and $12.7 million, respectively.
The total trading volume of the 12 bitcoin ETFs fell by 55% to $712 million, with $1.61 billion in inflows the previous day. While the inflows may look promising, the drastic decrease in trading activity warrants some caution from investors.
Interestingly, these figures are in line with the crypto-report” target=”_blank” rel=”noopener nofollow”>Study on the global state of cryptocurrencies in 2024 According to Gemini, cryptocurrency ownership has remained steady despite market volatility. While France saw an increase from 16% to 18%, the survey noted that 21% of Americans and 18% of Britons owned cryptocurrencies. In contrast, Singapore saw a slight drop from 30% to 26% in ownership.
ethereum ETFs are on a tougher path
While the picture for ethereum ETFs is less clear, bitcoin ETFs are showing solid flows. ethereum spot ETFs saw net flows of $11.4 million on Sept. 10, breaking a five-day streak of strong outflows. With $7 million in inflows, Fidelity’s FETH led the charge; BlackRock’s ETHA came in second with $4.3 million. Still, the remaining seven Ether ETFs showed no flows.
While these inflows are positive, ethereum still faces further headwinds. WisdomTree withdrew its application for a spot ethereum ETF with the U.S. Securities and Exchange Commission after VanEck announced the closure of its ethereum Strategy ETF. These actions point to a drop in institutional confidence in ethereum-based products when taken alongside a cumulative net outflow of $562 million in Ether ETFs to date.
Global opinion and future direction
The global cryptocurrency landscape shows a variety of patterns. While cryptocurrency holdings remain high in major markets such as the US and UK, some areas, such as Singapore, are showing signs of waning interest. Market recovery depends on the tenacity of long-term investors, so Gemini’s research highlights that these elements could also drive future expansion, in addition to regulatory development and spot ETFs.
Featured image from CBC, chart from TradingView
