After a week marked by significant outflows, spot Bitcoin ETFs saw $235 million in inflows in a single day. This renewed interest reflects a possible stabilization of the market, despite geopolitical uncertainties linked to tensions between Iran and Israel.
Spot Bitcoin ETFs attract investors in an unfavorable economic context
Early last week, the situation between Iran and Israel reached a crisis point. In response to the assassination of Hezbollah leader Hassan Nasrallah, Iran sent around 200 missiles towards Israel. Fearing an intensification of the conflict, the first hours witnessed hasty sales of assets deemed risky, which caused a decline in indices such as the S&P 500, the CAC 40 as well as in the cryptocurrency sector.
The price of Bitcoin was immediately impacted, with a loss of 6% in the hours following the attack. The price of Ether fell even more sharply, exceeding 12%, while the price of BNB fell by 7%, and that of SOL recorded a drop of more than 14%. In general, the capitalization of cryptocurrencies excluding Bitcoin has plunged by almost 10%.
🔒 Discover our top 12 of the best wallets to secure your BTC in 2024
US spot Bitcoin ETFs have not been spared from tensions in the Middle East. The escalation between Iran and Israel has led to record outflows of $242 million on October 1, 2024 alone, marking the 5th worst day in their history.
In total, last week saw over $300 million in net outbound volumesreflecting the disinterest of professional investors in BTC during times of crisis.
Spot Bitcoin ETF volumes
On the other hand, the volumes recorded yesterday reveal an opposite trend compared to the previous week, with $235 million in net inbound volume, a record since the week before the attacks.
In more detail, the iShares Bitcoin Trust (IBIT), BlackRock's spot Bitcoin ETF, continues to attract significant capital, with $97.88 million in net inflows over the last 24 hours.
Once again, the Fidelity Wise Origin Bitcoin Fund (FBTC) surprises by outperforming BlackRock, recording $103.68 million in net flows over the same period.
The Grayscale Bitcoin Trust (BTC), still in decline, displays a neutral net balance.
Buy cryptos on eToro
ETFs may not have as much impact as we think
Despite the return of significant volumes on spot Bitcoin ETFs, the price of BTC closed yesterday down.
Bitcoin price against the dollar
Indeed, although the balance is positive, these ETFs totaled $1.22 billion in volume, while CoinMarketCap reports $33.5 billion in overall volumes.
📰 Also read in the news – FTX: Court approves reorganization plan, creditors soon to be repaid
This gap highlights that, although these new financial products can influence the price of BTC, they represent only a fraction of total volumes and can show positive net flows even when the BTC price falls.
Ledger: the best solution to protect your cryptocurrencies 🔒
Sources: SoSoValue, CoinMarketCap
The #1 Crypto Newsletter 🍞
Receive a summary of crypto news every day by email 👌
What you need to know about affiliate links. This page may feature investment-related assets, products or services. Some links in this article may be affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no harm to you and you can even get a bonus using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and cannot be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your capacity to lose part of this savings. Do not invest if you are not prepared to lose all or part of your capital.
To go further, read our Financial Situation, Media Transparency and Legal Notices pages.
First attracted by the lure of gain, I am now trapped deep into the rabbit hole. With no way out, I just have to share my knowledge and convey the passion I have for Bitcoin. I am also the creator of Adopt a Block, an educational site dedicated to Bitcoin.
Marius Farashi Tasooji
335 items
