Bitcoin ETFs outperform Ether ETFs as BlackRock’s IBIT leads peers

Bitcoin ETF flows outperform Ether ETFs as BlackRock


Bitcoin ETFs have attracted $5B net inflows while Ether ETFs have seen $500M net outflows.
BlackRock’s IBIT leads with over $224M in a single day, currently holding over 350,000 BTC.
Ether ETFs are struggling due to liquidity issues and Grayscale’s $2.5B outflows.

Recent trends in the cryptocurrency exchange-traded funds (ETF) market have highlighted a significant divergence in the performance of Bitcoin and Ether ETFs.

Comparing Bitcoin ETF Flow data to Ethereum ETF Flow data on Farside Investors, Ether spot ETFs have underwhelmed compared to their Bitcoin counterparts. Since their launch, Ether ETFs have experienced net outflows of approximately $500 million, a stark contrast to the $5 billion net inflows recorded by BTC ETFs during a similar period following their debut.

Several factors contribute to this disparity. To start with, Bitcoin’s “first mover advantage,” higher liquidity, and lack of staking opportunities in Ether ETFs have made Bitcoin more appealing to institutional investors.

Binance

Additionally, unexpected outflows from Grayscale’s Ethereum Trust (ETHE), amounting to $2.5 billion, far exceeding the bank’s initial $1 billion estimate, have further dampened Ether ETF performance. To counter these outflows, Grayscale introduced a mini-Ether ETF, but it has only managed to attract $200 million in inflows.

In contrast, BTC ETFs have shown resilience and robust performance with US-based BTC ETFs recording an impressive eight-day winning streak, with net inflows totalling $202 million led by BlackRock’s iShares Bitcoin Trust (IBIT).

On August 26 alone, IBIT attracted over $224 million in net inflows bringing its total Bitcoin holdings to over 350,000 BTC, solidifying its dominance in the market.

Bitcoin ETF flows outperform Ether ETFs as BlackRock's IBIT leads peers
US Bitcoin ETF AUM, August January 18 – August 30, 2024|Source: Bitcoin ETF Fund Flows

Competing funds such as those managed by Franklin Templeton and WisdomTree also saw positive inflows, while others, including Fidelity, Bitwise, and VanEck, reported negative flows. Notably, Grayscale’s Bitcoin Trust (GBTC) saw a decline in redemptions over the past two weeks, indicating stabilization in the market.

As investor confidence in Bitcoin ETFs grows, asset managers are increasingly exploring combined ETFs that offer exposure to both Bitcoin and Ethereum, reflecting the evolving dynamics of the cryptocurrency investment landscape.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

You have not selected any currency to display

Pin It on Pinterest

Ico-Investor
Paxful
Ico-Investor
Bitcoin ETF flows outperform Ether ETFs as BlackRock
Binance
Bitcoin ETF flows outperform Ether ETFs as BlackRock's IBIT leads peers
Changelly
Ethereum (ETH) Price Stabilizes at $2,500 as Institutions Favor Bitcoin ETFs
Crypto ETPs See 3.7B Inflows As Bitcoin Surges Past $118K
Altcoins Surge While Bitcoin Dominance Holds: Analyst
Technical Indicators Point to $2,100 Target in Near-Term
Ether Rally To $3K Possible As ETF Flows, Futures OI Soar
Truth Social Bitcoin And Ether ETF Filing Acknowledged By SEC
Blockonomics
TokenMetrics
Crosschain Laundering Rises 200% in Two Years to $21B: Elliptic
Bitcoin pulls back; AI token sector market cap hits $29.6B
Coinpedia - Fintech & Cryptocurreny News Media
New Hungarian Law Criminalizes ‘Unauthorized’ Crypto Trades, Rattling Firms
DeFi Needs More Than Ideals: A Conversation with Nikola Vukovic of DeFi Saver
Crosschain Laundering Rises 200% in Two Years to $21B: Elliptic
Bitcoin pulls back; AI token sector market cap hits $29.6B
Coinpedia - Fintech & Cryptocurreny News Media
New Hungarian Law Criminalizes ‘Unauthorized’ Crypto Trades, Rattling Firms