Bitcoin ETFs Recover and Break Out of Negative Trend
For Bitcoin and Ethereum exchange-traded funds (ETFs), there has been a constant outflow of funds for weeks. Now, Bitcoin ETFs have finally made a turnaround. After a period of outflow, there is now a clear inflow, indicating renewed confidence.
This remarkable resurgence follows a period of unprecedented inflow earlier this year, with peaks of $1.96 billion in the week of January 17th and $1.76 billion the following week. This inflow coincided with a remarkable rise in the Bitcoin price, which reached a record high of $109,000 around January 20th. However, as is often the case in the crypto market, a correction followed, with the price falling to around $78,000. The current inflow, the strongest since January, has driven the Bitcoin price back up to approximately $87,343 at the time of writing.
Disclaimer: This is no financial advice. Always consider your own investigation and professional advice.
Bitcoin ETF Inflow
Bitcoin ETFs have registered a significant net inflow of $744.4 million, the strongest result in eight weeks. This follows a five-week period in which money was flowing out of the market. BlackRock's iShares Bitcoin Trust (IBIT) fund, in particular, has played a leading role in this.This remarkable resurgence follows a period of unprecedented inflow earlier this year, with peaks of $1.96 billion in the week of January 17th and $1.76 billion the following week. This inflow coincided with a remarkable rise in the Bitcoin price, which reached a record high of $109,000 around January 20th. However, as is often the case in the crypto market, a correction followed, with the price falling to around $78,000. The current inflow, the strongest since January, has driven the Bitcoin price back up to approximately $87,343 at the time of writing.
Continued Outflow for Ethereum ETFs
This recovery comes at a time when general economic uncertainty is increasing, with concerns about international trade and possible recessions. While the Bitcoin market is recovering, we see a different picture with Ethereum ETFs. There, the outflow trend has unfortunately not yet reversed, with a net outflow of $102.9 million in the past week.Positive Signals
However, despite this outflow, we also see positive signals. The increase in the amount of Ethereum in BlackRock's BUIDL fund, which now holds more than $1.15 billion in Ethereum, indicates growing institutional confidence in Ethereum's role as the foundation for real-world asset tokenisation. The challenges Ethereum ETFs are currently facing may stem from various factors, including the complexity of the Ethereum network, regulatory uncertainty, and the general volatility of the crypto market.Disclaimer: This is no financial advice. Always consider your own investigation and professional advice.