Bitcoin (BTC) Exchange Traded Funds (ETFs) Have Significantly Impacted the Crypto Market, Showing Strong Performance Since Their Launch
- PHPzOriginal
- 2024-08-27 09:23:12923browse
Bitcoin and Ethereum ETF analysis According to the latest update from Farside Investors, BTC ETFs recorded net inflows of $252 million.
The launch of Bitcoin [BTC] Exchange Traded Funds (ETFs) has had a significant impact on the crypto market, with the funds showing strong performance since their debut.
According to the latest update from Farside Investors, BTC ETFs recorded net inflows of $252 million.
Leading the pack was BlackRock’s IBIT, which saw $86.8 million in inflows, followed by Fidelity’s FBTC, which saw $64 million.
However, Grayscale’s GBTC faced challenges, recording $35.6 million in outflows as of 23rd August.
Meanwhile, Ethereum [ETH] ETFs have had a tougher time, largely experiencing outflows since their inception. As of 23rd August, ETH ETFs recorded $5.7 million in outflows.
Notably, BlackRock’s ETHA saw zero inflows, while Fidelity’s FETH, Bitwise’s ETHW, and VanEck managed to record some inflows.
However, Grayscale’s ETHE faced significant outflows, recording $9.8 million, which surpassed the outflows of all other Ethereum ETFs combined.
Commenting on the development, an X handle with the username- Crypto Crib noted,
“Last week, $ETH spot ETFs had a net outflow of $44 million.
$BTC spot ETFs had a net inflow of $506 million.”
Source: Quinten/X
As highlighted by the X handle, the contrasting flows into BTC and ETH spot ETFs were not surprising, given that Ethereum ETFs’ trading volumes on their first day were only a quarter of what spot Bitcoin ETFs achieved on their debut.
The launch of Spot Bitcoin ETFs created immense excitement in the market, setting a high standard that Ethereum ETFs have yet to match.
While Bitcoin ETFs saw impressive trading volumes right from the start, Ethereum ETFs have struggled to generate similar interest, reflecting a more subdued market response and indicating that they have not captured the same level of enthusiasm.
Impact on the token’s prices
Following the launch of Bitcoin ETFs, BTC soared to a new all-time high of $73K in March.
In contrast, Ethereum has faced challenges, struggling to surpass the $3K mark.
As per the latest CoinMarketCap update, ETH was trading at $2,735, falling short of the earlier anticipated $4K level.
This divergence could also be attributed to Bitcoin’s established dominance and its first-mover advantage, which has solidified its position as the preferred choice for many traders.
Moreover, Bitcoin’s robust proof-of-work system, often touted as the pinnacle of decentralization, further strengthens its appeal compared to alternatives like Ethereum.
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