Bitcoin ETFs Gained $1B Last Week

Bitcoin ETFs pulled in another $1 billion last week, showcasing the rising interest among institutional investors in digital assets. This figure represents the highest level of net inflows since July, underlining the growing receptiveness to Bitcoin and other cryptocurrencies.

Despite a minor drop in early Monday trading, Bitcoin’s price remains around the $64,000 mark, further fueling the interest in Bitcoin ETFs. This surge is noteworthy, given the fluctuating market conditions.

Institutional Investors Prove Bitcoin’s Appeal

During this period, BlackRock’s Ethereum ETF (ETHA) saw an inflow of $94.9 million, surpassing other Ethereum ETFs. Fidelity’s Ethereum ETF (FETH) followed closely with $64.9 million. Interestingly, Grayscale’s ETF (ETHE) experienced an outflow of $127 million, indicating a possible shift of capital towards more recent offerings, as per data from SoSo Value.

Bitcoin and Ethereum ETFs Show Strong Growth

The inflows into Bitcoin ETFs have caught the attention of market watchers. Avinash Shekhar, Co-founder and CEO of Pi42, remarked to Decrypt that the considerable net inflows into Bitcoin spot ETFs signify a renewed investor confidence. This boost comes shortly after the Federal Reserve’s interest rate cut, further enhancing the market outlook for Bitcoin ETFs.

Shekhar also highlighted the resurgence in Ethereum ETFs, which have seen their second-best weekly performance since their inception. According to him, both Bitcoin and Ethereum ETFs appear poised for promising growth, driven by the current market trends.

This influx into Bitcoin and Ethereum financial products suggests a strengthening faith in the cryptocurrency market amid various macroeconomic factors. For instance, Japan’s plans to review cryptocurrency regulations could lead to lower taxes and the introduction of domestic funds that focus on digital assets, as reported by Bloomberg.

As of early Monday morning in European hours, Bitcoin (BTC) was priced at $63,880, showing a 2.8% decline. Simultaneously, Ethereum (ETH), the second largest by market cap, traded at $2,630, also seeing a modest decline of 0.7%, according to CoinGecko data.

Supporting the optimistic view, CoinShares reported that digital asset investment products experienced a third week of consecutive inflows, amounting to $1.2 billion. This positive trend is linked to expectations of dovish monetary policy in the U.S., with total assets under management increasing by 6.2% last week.

While Bitcoin ETFs dominated, Ethereum broke its five-week negative influx streak, drawing in $87 million. Altcoins showed mixed results; Litecoin (LTC) and XRP saw inflows of $2 million and $0.8 million respectively, whereas Binance and Stacks (STX) faced outflows of $1.2 million and $0.9 million respectively.

Additionally, CryptoQuant indicates that Bitcoin’s supply in profit remains high, frequently staying above 80% during bullish cycles. Conversely, brief dips below this threshold offer buying opportunities. Recent summer fluctuations have occasionally dipped below 80%, yet investors have capitalized on these moments, suggesting a persistent bull market sentiment.

Edited by Stacy Elliott.

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