Spot Bitcoin exchange-traded funds (ETFs) in the United States have reached a new milestone, with total net inflows surpassing $18 billion, reflecting heightened investor confidence in the cryptocurrency market.
On August 26, spot Bitcoin ETFs saw a significant net inflow of $202.6 million, pushing the cumulative total to exceed the $18 billion threshold, according to data from Farside Investors.
Increased Investment in Bitcoin
Alvin Kan, COO of Bitget Wallet, commented on the trend, stating, “Investors are likely turning to more stable assets. The increased confidence in Bitcoin is expected to drive both its price and the stability of the market in the long term.”
Among the notable contributors to this surge, BlackRock’s IBIT ETF led with inflows totaling $224.1 million. Franklin Templeton’s EZBC and WisdomTree’s BTCW also saw positive inflows of $5.5 million and $5.1 million, respectively.
Conversely, several funds experienced outflows. Bitwise’s BITB saw $16.6 million in outflows, while Fidelity’s FBTC and VanEck’s HODL recorded outflows of $8.3 million and $7.2 million, respectively. The remaining spot Bitcoin ETFs remained neutral.
Market Dynamics
Despite the positive inflows, Bitcoin’s price fell by 1.3% in the past 24 hours, trading at approximately $63,000. Kan attributed Bitcoin’s bullish momentum to potential U.S. Federal Reserve rate cuts, which could enhance market liquidity and shift investor behavior toward riskier assets.
“In the short term, the Federal Reserve’s potential rate cuts could increase market liquidity, influence investor behavior, and introduce volatility due to ongoing geopolitical tensions,” Kan added.
Ethereum ETFs Experience Outflows
While Bitcoin ETFs are flourishing, spot Ethereum ETFs in the U.S. recorded their eighth consecutive day of net outflows. According to Farside Investors, these products saw $13.2 million in net outflows from ETHE, FETH, and EZET.
Ethereum’s price also declined by 1.7% over the past day, currently trading around $2,700.
The trends in Bitcoin and Ethereum ETFs highlight a shifting landscape in the cryptocurrency market, with Bitcoin gaining investor confidence while Ethereum faces ongoing challenges.
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