US Crypto ETFs Surge with $350 Million in New Inflows: Bitcoin and Ethereum Lead the Way

U.S.-listed cryptocurrency exchange-traded funds (ETFs) focused on Bitcoin and Ethereum saw a major uptick in inflows, bringing in approximately $350 million over September 24 and 25, 2024. This inflow marks a significant boost for the crypto ETF market, particularly for Bitcoin, which saw its fifth consecutive day of positive performance. Ethereum ETFs also followed suit, signaling renewed interest from institutional investors as the crypto market continues to evolve.

Key Takeaways

• U.S.-listed Bitcoin and Ethereum ETFs attracted a combined total of $350 million in inflows on September 24 and 25, with Bitcoin ETFs dominating the majority of the inflows.
• BlackRock’s iShares Bitcoin Trust led the inflows, bringing in $98.89 million on September 24 and $184 million on September 25, marking one of the largest increases in recent months.
• Ethereum ETFs posted a significant recovery, with BlackRock’s iShares Ethereum Trust securing $59.25 million on September 24, its largest inflow since August 2024.

Bitcoin ETFs Lead the Inflows

September 24 Data

On September 24, Bitcoin-focused ETFs recorded a substantial inflow of $135.95 million, marking the fourth consecutive day of positive momentum. This renewed interest was driven by multiple funds, with BlackRock’s iShares Bitcoin Trust (IBIT) leading the charge, securing $98.89 million in fresh capital.

Other prominent Bitcoin ETFs also saw notable contributions, including:

• Bitwise Bitcoin ETF (BITB): Added $17.41 million in inflows.
• Fidelity’s Wise Origin Bitcoin Fund (FBTC): Recorded $16.8 million.
• Grayscale Bitcoin Mini Trust: Saw $2.85 million in net inflows.

These inflows helped push Bitcoin ETFs to their best streak in recent months, despite some funds, like Grayscale Bitcoin Trust (GBTC), recording neutral flows for the day.

September 25 Data

The following day, September 25, Bitcoin ETFs maintained their positive trajectory, bringing in an additional $106 million. Once again, BlackRock’s iShares Bitcoin Trust (IBIT) was the top performer, netting approximately $184 million in new inflows.

However, the day also saw outflows in some ETFs, particularly:

• Fidelity’s Bitcoin Fund (FBTC): Recorded outflows of $33 million.
• ARK Invest/21Shares Bitcoin ETF (ARKB): Faced outflows of $47 million.

Despite these outflows, the overall trend remained bullish, further fueling speculation about the potential for sustained price support for Bitcoin.

Ethereum ETFs Join the Surge

Ethereum ETFs followed closely behind, adding approximately $105 million in inflows across September 24 and 25. This marked the strongest inflow for Ethereum-focused ETFs since early August 2024.

September 24 Data for Ethereum ETFs

On September 24, Ethereum ETFs posted a substantial inflow of $62.51 million, led by BlackRock’s iShares Ethereum Trust (ETHA), which brought in $59.25 million. Other funds, such as the VanEck Ethereum Trust (ETHV) and Invesco Galaxy Ethereum ETF (QETH), also recorded smaller inflows of $1.94 million and $1.32 million, respectively.

September 25 Data for Ethereum ETFs

Ethereum ETFs continued their upward momentum on September 25, netting an additional $43.23 million in inflows. Notable contributors included BlackRock’s iShares Ethereum Trust with $9.38 million and Grayscale’s Ethereum Trust with $26.63 million in inflows. However, total outflows from Ether ETFs over the past month remain significant, with $580.94 million in outflows overall.

What’s Driving the Inflows?

Several factors have contributed to the surge in crypto ETF inflows, particularly for Bitcoin. Analysts attribute the renewed interest to increasing institutional demand, particularly as more major financial firms like BlackRock and Fidelity enter the crypto space. Additionally, the resilience of Bitcoin ETFs, despite market volatility, suggests that investors are seeing these ETFs as a safer way to gain exposure to digital assets without directly holding cryptocurrencies.

Can These Inflows Impact BTC Prices?

Some analysts believe that these sustained inflows into Bitcoin ETFs could provide a cushion for BTC prices, even amid lower demand from spot buyers. As noted by analysts at Bitfinex, “Sustained ETF inflows could buoy the BTC price,” helping mitigate short-term market corrections and support a more stable price trajectory. Bitcoin, which is currently trading at $64,414, has seen a 3.24% increase since September 19, marking a strong recovery from its traditionally weaker performance in September.

FAQs

What are the key drivers behind the recent surge in crypto ETF inflows?

Increased institutional interest, particularly in Bitcoin and Ethereum ETFs, along with major firms like BlackRock and Fidelity offering new funds, has driven significant inflows.

How will these ETF inflows impact Bitcoin’s price?

Sustained inflows into Bitcoin ETFs could provide price support, helping counterbalance reduced demand from spot buyers and mitigating potential price corrections.

Which ETFs saw the highest inflows in late September?

BlackRock’s iShares Bitcoin Trust and Ethereum Trust were the largest contributors, with inflows of $98.89 million and $59.25 million, respectively, on September 24.