Spot Bitcoin ETFs See $294M in Inflows Despite BTC Price Dip

Spot Bitcoin exchange-traded funds (ETFs) attracted significant inflows on Monday, totaling $294.29 million despite a dip in Bitcoin’s price.

BlackRock’s IBIT ETF stood out as a top performer, leading the inflows on October 21 with a remarkable $329.03 million, according to data from SoSo Value.

The fund has gained traction among investors seeking Bitcoin exposure, amassing over $1 billion in net inflows over the past week alone.

IBIT ETF Secures Third Place in YTD Inflows

The surge has propelled the IBIT ETF into surpassing Vanguard’s Total Stock Market ETF in year-to-date inflows and securing the third spot overall, according to Bloomberg’s ETF analyst, Eric Balchunas.

$IBIT had one hell of a week, +$1.1b in new cash, best week since March, passed $VTI for 3rd place overall in YTD flows (insane for new launch, esp late in year, the rest of the top 5 is each over 20yrs and old and over $300b. $IBIT's aum is $26b which is in top 2% of all ETFs. pic.twitter.com/KX7eD3EzFP

— Eric Balchunas (@EricBalchunas) October 21, 2024

While BlackRock’s IBIT ETF dominated the market, other ETFs also witnessed notable activity.

Fidelity’s FBTC fund reported $5.9 million in inflows on October 22, contributing to the broader trend of investor confidence in spot Bitcoin ETFs.

However, not all funds benefited from this influx. Several competing ETFs, including Bitwise’s BITB, ARK’s ARKB, VanEck’s HODL, and Grayscale’s GBTC, faced redemptions exceeding $40 million.

These funds, along with others, struggled to attract new investments during the day’s trading.

Investors continued to show confidence in these financial products even as the leading cryptocurrency experienced a 3.25% decline, falling from an intraday high of $69,227 to a low of $66,975.

The price dip led to substantial liquidations across the crypto market, with Bitcoin accounting for $40.53 million out of a total of $167 million in long liquidations.

Ethereum, the second-largest cryptocurrency, saw even higher long liquidations, amounting to $55.9 million.

The strong performance of Bitcoin-focused ETFs contrasted sharply with the activity in Ethereum-based ETFs, which faced a challenging day.

On October 21, spot Ethereum ETFs recorded $20.8 million in net outflows, halting a three-day streak of inflows.

Grayscale’s ETHE fund led the outflows, with $29.58 million being withdrawn from the fund.

However, some of the losses were mitigated by inflows into other Ethereum ETFs, including BlackRock’s ETHA and VanEck’s ETHV, which saw inflows of $4.86 million and $3.92 million, respectively.

Despite these positive movements, the majority of spot Ethereum ETFs saw little to no activity.

Digital Asset Products Attract $2.2B in Inflows

The broader digital asset investment market showed signs of renewed optimism, with $2.2 billion in inflows for the week, the largest increase since July.

The uptick in investor sentiment is attributed to expectations of a Republican victory in the upcoming U.S. elections, which could be seen as more favorable for digital assets.

The U.S. led the inflows with $2.3 billion, while other regions, such as Canada, Sweden, and Switzerland, saw minor outflows, possibly due to profit-taking.

Bitcoin remained the primary driver of these inflows, securing $2.13 billion, while short Bitcoin products also saw notable inflows of $12 million, the largest since March.

Meanwhile, Ethereum-based products saw $58 million in inflows, and altcoins such as Solana, Litecoin, and XRP experienced smaller gains.