For the first time, Bitcoin and Ethereum spot ETFs recorded significant simultaneous inflows, demonstrating growing investor interest in these two cryptocurrencies. This event reflects a shift in perception of digital assets, likely reinforced by the recent Federal Reserve (FED) pivot that occurred just days prior.

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Spot Ethereum ETFs slowing down compared to spot Bitcoin ETFs

In January 2024, the United States Securities and Exchanges Commission (SEC) approved, almost unwillingly, spot Bitcoin ETFs after losing a lawsuit against digital asset management giant, Grayscale. In July, when few investors were still hoping for it, the SEC also approved spot Ethereum ETFs.

Although these new financial products do not allow their holders to benefit from the characteristics of the Bitcoin or Ethereum blockchain, they nevertheless have the advantage of bringing liquidity to the market, thus increasing the capitalization of the 2 cryptocurrencies while reducing, in to some extent, their short-term volatility.

📈 Everything you need to know about spot Bitcoin ETFs

Since their launch, Ethereum spot ETFs have been very disappointing. These Ether-based products saw net outbound volumes of $580 million. Only 2 days showed positive results: launch day and August 6, with around $100 million in net inflows each.

Evolution of Bitcoin and Ethereum spot ETFs since their launch

In a completely different context, Spot Bitcoin ETFs have far exceeded expectations, with nearly $18 billion in net inflows since their launch in January. The day of March 12 notably crossed the billion dollar mark in net volumes, followed by more than 800 million dollars on April 6.

Beyond the fact that they were launched 6 months earlier, the performance of spot Bitcoin ETFs above all reflects an uncertain economic environment, where the effects of central bank monetary policy become less predictable, and where Bitcoin is gradually establishing itself as a store of value and a real alternative to fiat currencies.

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Inflows at the same time on Bitcoin and Ethereum spot ETFs

Although the 2 ETFs have experienced very different volumes since their launch, they record significant incoming flows simultaneously for the first time.

Indeed, between Tuesday September 24 and Wednesday September 25, Ethereum spot ETFs accumulated 62 then 43 million dollars in net inflowsfor a total of $105 million. Over the same period, spot Bitcoin ETFs recorded $135 million then $105 million in net inflow volumesthus reaching 240 million dollars.

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These volumes don't mean much on their own, but their simultaneous arrival on the 2 ETFs, only a few days after the reduction in interest rates by the Federal Reserve, probably reflects a renewed attractiveness for these 2 cryptocurrencies in the eyes of traditional and institutional investors. A trend that could lead to a new bullish cycle.

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Source: SoSoValue

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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.

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