lackRock, one of the largest asset management companies, witnessed an inflow of $158 million in Bitcoin and Ethereum ETFs on September 25, 2024. This indicates the growing interest by institutional investors in cryptocurrencies as a viable asset class.
Data from Farside Investors reflects a strong pattern of cryptocurrency investments, primarily Bitcoin, which has remained consistent in attracting large pools of money.
Performance of Bitcoin ETFs
On September 24, net inflows into the Bitcoin ETFs hit $136 million, dominated by BlackRock's IBIT ETF at $98.9 million or about 1,548 BTC. Other notable inflows were Fidelity's FBTC at $16.8 million and Bitwise's BITB at $17.4 million.
This figure accounts for almost five times the daily issuance of Bitcoin, estimated at around 450 BTC currently. This sharp rise in inflows hints at strong demand for Bitcoin investment products, with total assets managed in Bitcoin ETFs reaching $17.8 billion.
Ethereum ETF Affairs
Meanwhile, Ethereum ETFs saw a significant inflow amounting to $62.5 million on the very same day, ranking as the third-biggest inflow since their inception. BlackRock's ETHA led the way in Ethereum's performance, with an inflow of $59.3 million, the largest since August 9, 2024.
This rally in Ethereum ETF inflows follows on the heels of a spell of very heavy outflows and just goes to demonstrate the unpredictability of the cryptocurrency market. Even with these recent gains, total outflows from Ethereum ETFs are still high at $624.4 million, reflecting lingering investor caution regarding Ethereum relative to Bitcoin.
As of the latest data from CoinMarketCap, Bitcoin was trading at about $63,920, while Ethereum is trading at approximately $2,624. The shifts reflect the volatile nature of the market that sets investor behaviour and broader economic factors.
Market Implications
Inflows into BlackRock's crypto ETFs reflect a wider trend of institutional adoption of cryptocurrencies. As big financial players like BlackRock launch and expand their suites of ETFs, they become players who will add to greater market stability and acceptance of digital assets. The strong inflows into Bitcoin ETFs show that this is not some fleeting institutional interest but rather a part that is increasingly expanding in the investment landscape.
Both Bitcoin and Ethereum ETFs have emerged as the go-to investment vehicle for institutional investors looking to tap into cryptocurrencies sans the ownership complexities thereof. In so doing, with these funds gathering steam, it only goes to feed supply scarcity in the market, most especially on the subject of Bitcoin. The huge inflows reported on September 24 were testimony to investor sentiment and showed how cryptocurrencies are finding more traction inside traditional financial markets.
