Spot Bitcoin ETFs Show Strong Inflows as Ethereum Struggles

18-09-2024 By: Deep Upadhyay
Spot Bitcoin ETFs Sh

Bitcoin ETFs and Ethereum ETFs Moving in Opposite Direction: Why?

Spot Bitcoin ETFs Show Strong Inflows

On September 17, Bitcoin spot ETFs saw a strong inflow of $187 million, marking the fourth consecutive day of positive net inflows. This surge highlights growing investor confidence in Bitcoin and related products. Grayscale ETF GBTC recorded no outflows, while Fidelity's FBTC received an inflow of $56.61 million, and Bitwise's BITB attracted $45.35 million in investments. 

Source: SoSoValue

This increased inflow played a significant role in boosting Bitcoin’s price by 3.12%, bringing its value to $60,284.83, with a market cap of $1.19 trillion and a 24-hour trading volume of $39.29 billion.

The upcoming Federal Open Market Committee (FOMC) meeting, scheduled for September 17-18, has contributed to this upward momentum. Investors are optimistic about potential rate cuts by the U.S. Federal Reserve after a series of aggressive hikes. The CME Group’s FedWatch Tool indicates a 65% chance of a 0.5% rate cut. 

Additionally, MicroStrategy’s decision to sell up to $700 million in convertible senior notes to buy Bitcoin has further driven the market's bullish sentiment.

Spot Ethereum ETFs Face Struggles Amid Net Outflows

In contrast to Bitcoin’s robust performance, Ethereum spot ETFs are struggling. On the same day, Ethereum ETFs saw a total net outflow of $15.11 million, with Grayscale Ethereum Trust ETF (ETHE) recording a significant outflow of $17.88 million. This outflow has led to a cumulative net inflow of just $605.84 million as of September 17. 

Source: SoSoValue

Ethereum’s price currently stands at $2,321.69, with an 11.71% drop in the past month, and a market cap of $279.47 billion.

Bitstamp’s Bobby Zagotta noted that the timing of Ether ETFs was unfortunate, launching during a difficult period for risk assets. He added that if the Ether ETF had launched alongside Bitcoin’s ETF, it might have performed better. With only a third of trading days ending in positive inflows, Ethereum ETFs face challenges from competitors gaining more traction in the market.

Also Read: Trump Crypto Move: WLFI Token Launch A Boon Or Bane?

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