Bitcoin and Ethereum exchange-traded funds see $3.6 billion in inflows this week
Investor interest in gaining exposure to cryptocurrencies through exchange-traded funds (ETFs) surged last week, with Bitcoin ETFs seeing a total of $2.7 billion in net inflows over just five days of trading. This influx of capital represented a significant boost for these financial vehicles, indicating a growing demand from institutional investors.
Data from FarSide Investors highlighted the exceptional activity in this space, with Thursday and Friday being particularly notable. On Thursday, Bitcoin ETFs in the US received the second-largest daily influx since their inception, totaling $1.18 billion. Major funds such as BlackRock’s IBIT, Fidelity’s FBTC, and ARK Invest’s ARKB all saw substantial inflows.
The positive trend continued on Friday, with an additional $1.03 billion flowing into Bitcoin ETFs. BlackRock’s IBIT led the way, attracting $953.5 million of that total. Throughout the week, inflows remained consistent, reflecting a high level of demand for exposure to Bitcoin.
Ethereum-based ETFs also had a strong showing, recording $908.1 million in net inflows for the week. This surge in capital came at a time when investor confidence in these funds was on the rise ahead of their one-year anniversary. Strong inflows on Thursday, especially for BlackRock’s ETHA, helped bolster Ethereum’s price, pushing it above $3,000 by the end of the week.
The significant capital inflows into both Bitcoin and Ethereum ETFs had a direct impact on the prices of these assets. Bitcoin soared to an all-time high of nearly $119,000, a remarkable milestone that reflected the growing interest from institutional investors. Ethereum also experienced a notable price increase, reaching multi-month highs and posting gains of over 17% for the week.
In total, ETFs focused on Bitcoin and Ethereum attracted over $3.6 billion in inflows, underscoring the growing importance of cryptocurrencies in mainstream investment portfolios. With institutional interest showing no signs of slowing down, the outlook for the crypto market remains positive.
The consistent demand for crypto exposure through ETFs and the resultant price rallies indicate a broader trend of acceptance and adoption of digital assets by traditional investors. As these financial products continue to gain traction in the market, they are likely to play an increasingly significant role in shaping the investment landscape in the years to come.
