US Bitcoin (BTC) – led by Fidelity – and Ethereum (ETH) ETFs experienced contrasting net flows, with BTC ETFs noting significant inflows and ETH ETFs recording outflows.
According to an analysis by SpotOnChain, Fidelity’s Bitcoin (FBTC) ETF led the charge in Bitcoin ETFs’ inflows, while Grayscale was the major player in ETH ETFs’ outflows.
16 AUG US #ETF:
$36M to $BTC and
$15M $ETH
BTC ETF UPDATE (final): +$36M
• Fidelity leads the inflow today, while Grayscale sees a strong outflow.
• The total flow for the week is +$33M (only one negative day).
• Today’s flow… pic.twitter.com/cDF0gPTLBP
— Spot On Chain (@spotonchain) August 17, 2024
Bitcoin ETFs Recorded $36M Net Inflows
BTC ETFs recorded a net flow of about $36 million, driven by significant investments into Fidelity’s FBTC. The total inflow for the week stands at $33 million, with only a day of negative flows. This trend suggests growing investor confidence despite BTC’s fluctuating price performance.
Total inflows into FBTC were $61.3 million, making it the largest inflow among all the ETFs. However, Grayscale’s Bitcoin Trust (GBTC) partially offset this positive momentum after recording an outflow of $72.9 million.
Ethereum ETFs’ $15M Outflows
Conversely, Ethereum ETFs struggled, recording $15 million in net outflows on the same day. Grayscale was also the primary driver of this downturn, with its ETHE fund alone accounting for $27.7 million in outflows.
VanEck also contributed to the negative trend, reporting a $4.8 million outflow from its ETHV fund. On the positive side, BlackRock’s ETHA fund noted an inflow of $10.3 million, while Fidelity’s FETH fund recorded $7.2 million in inflows.
Despite these pockets of positivity, ETH ETFs have had a challenging week, with total outflows reaching $14.1 million over this period. The latest outflows mark two consecutive days of outflows, raising concerns about the asset’s short-term prospects.
Investment Advisors Shift to BTC ETFs
Meanwhile, Coinbase reports that investment advisors have been increasing their holdings in Bitcoin ETFs throughout the second quarter of 2024, signaling growing institutional interest. However, the summer slowdown in the US may delay significant inflows, with potential investors and financial advisors being less active during this period.
According to Coinbase, institutional investors accounted for $2.4 billion in net inflows into the ETF market in Q2, despite BTC’s price declining 14.6% over the same period. The 15% rise in Chicago Mercantile Exchange (CME) Bitcoin futures contracts indicates that some hedge fund managers are shifting their strategies to take advantage of price differences between spot ETFs and futures contracts.
Since the launch of spot Bitcoin ETFs in January 2024, the total inflows have reached $17.35 billion, reflecting sustained interest from institutional investors despite the broader crypto market volatility.
