• Crypto & Funx
• 11 Nov, 2024

Bitcoin Spot ETFs attracted nearly $1 billion in investments last week with BlackRock's IBIT alone generating more than the entire value.

Despite the enthusiasm surrounding Bitcoin, Ethereum’s ETFs are grappling with continued outflows, recording up to $24.45 million in weekly outflows.

Institutional investment in the US-listed Bitcoin spot ETFs hit a new high last week, with nearly $1 billion poured into the funds. According to blockchain tracking platform SoSoValue, BlackRock’s iShares Bitcoin Trust (IBIT) contributed a lion’s share of the total investment.

This marks the third consecutive week of positive inflows for the products which entered the market in January this year following their approval by the United States Securities and Exchange Commission ().

Institutional Confidence in Crypto ETFs Bolstered by BlackRock

Since the beginning of October, Bitcoin spot ETFs have seen inflows exceeding $3 billion, underscoring Bitcoin’s appeal as a key asset for institutional investors, particularly amid the growing regulatory acceptance of crypto-related products in traditional finance.

Last week alone, all the eleven approved Bitcoin ETFs brought a total of $997.7 million into the market. Most of the inflows occurred on Friday, October 25, marking the highest daily contribution with $402.08 million added to the products.

That same day, BlackRock’s IBIT more than half of the entire investment, pulling in $291.96 million in daily inflow. The strong performance on Friday elevated the company’s cumulative inflows to $23.99 billion. In total, the fund generated more than $1 billion in weekly inflow.

Other Bitcoin ETFs such as Fidelity’s FBTC also saw significant performance last week with the fund attracting more than $71 million in net inflows. Currently, the product’s cumulative net inflow stands at $10.38 billion, as shown on SoSoValue.

In addition, Ark & 21Shares’ ARKB, Bitwise’s BITB, Grayscale’s GBTC, and VanEck’s HODL funds contributed to the positive inflows last week, indicating that demand extends across multiple providers

Ethereum Spot ETFs Face Continued Outflows

While Bitcoin spot ETFs enjoyed strong inflows, the same cannot be said for Ethereum-focused products. Last week, Ethereum spot ETFs experienced outflows of $24.45 million, marking their 11th consecutive week of negative returns. According to SoSoValue’s data, total net assets for Ethereum ETFs stand at $6.82 billion, compared to Bitcoin’s $65.25 billion, which represent approximately 4.93% of Bitcoin’s total market share.

A recent from Kaiko Research has identified a lack of institutional appeal as a key factor behind the persistent outflows from Ethereum ETFs since their launch.

The research highlights that while Bitcoin CME futures open interest has reached consecutive all-time highs, indicating strong institutional interest, Ether futures open interest on the CME has remained notably low at just 7,300 contracts, valued at approximately $970 million.

According to the firm, this disparity points to a less mature market for Ethereum, suggesting that institutional investors are significantly less engaged with ETH futures compared to their Bitcoin counterparts.