Spot bitcoin ETFs log $477 million in positive flows amid softening gold demand
Quick Take Spot bitcoin ETFs saw net inflows of $477 million yesterday, while spot Ethereum ETFs reported $141.6 million in inflows. One analyst pointed out that investors are looking for risk-adjusted investment opportunities as an alternative for gold.
Spot bitcoin exchange-traded funds in the U.S. returned to positive territory on Tuesday, reporting a total daily net inflow of $477.2 million.
"Yesterday's return to net positive flows signals a potential stabilization in institutional sentiment after recent volatility, suggesting renewed confidence in crypto as a portfolio diversifier amid economic uncertainties," said Nick Ruck, director at LVRG Research.
According to data from SoSoValue, nine out of 12 bitcoin funds saw net inflows yesterday, led by $210.9 million into BlackRock's IBIT. Ark 21Shares' ARKB reported $162.8 million in inflows, and Fidelity's FBTC recorded $34.15 million.
Spot Ethereum ETFs also saw net inflows yesterday, drawing in $141.6 million. Fidelity's FETH led the pack of inflows with $59 million, while funds from BlackRock, Grayscale and VanEck added inflows.
In the past few days, spot crypto ETFs saw over $1 billion in net outflows as the crypto market tumbled on persistent trade tensions between the U.S. and China.
Meanwhile, Bitcoin ETFs saw $7.41 billion worth of total trade volume on Tuesday, keeping in line with the elevated volumes the funds have seen this month. Volumes have ranged between $5 billion and $9.78 billion in October, compared with $2 billion to $4 billion last month.
Positive outlook
LVRG's Ruck views the volume growth as a positive factor for the ETFs and crypto in general.
"The surge in monthly trading volumes over the past month marks an uptick in institutional engagement, which delivers deeper liquidity and risk appetite as traditional investors increasingly allocate to digital assets for yield and hedging opportunities," Ruck said.
Ruck also said that the demand for gold has peaked, which will lead investors to seek alternative risk-adjusted opportunities in crypto. Spot gold prices saw a significant decline of 5.9% on Tuesday, recording the steepest intraday drop since 2020. As a result, some analysts predict an "aggressive catch-up trade" for bitcoin.
The Block's crypto price page shows that the crypto market remained relatively steady in the past day. Bitcoin edged up 0.18% in the past 24 hours to trade at $108,450, while ether is down 0.19% at $3,869.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Glassnode reports $14.2 billion stablecoin drop, $1.6 billion Bitcoin ETF outflow
CoreWeave's surge gives AI cloud a breather, now all eyes are on the Anthropic IPO and Nvidia
CoreWeave’s Q3 revenue and guidance both exceeded expectations, with its stock price surging 25% in a single day and the new cloud sector soaring over 12%. Reports of Anthropic’s potential $1.5 trillion IPO valuation, OpenAI’s quarterly revenue surpassing $10 billion for the first time, and these three positive catalysts together have boosted confidence in the AI computing power industry chain, which was previously troubled by doubts about AI returns. Next week’s Nvidia earnings report and Anthropic’s IPO will be the true test of whether this rally can continue.
AI Computing Power and Semiconductors Stage a Strong Rebound—Why Is Wall Street Cautious About U.S. Stocks? Key Indicators Reveal the Bottom Hasn't Been Reached
The sharp volatility in the US stock market has prompted investors to carefully analyze various data to determine whether the sell-off has ended. Early indicators suggest that it may be too soon to declare that the market has resumed its normal upward trajectory.
Nvidia (NVDA.US) Governance Crisis Escalates: Jensen Huang Exposed for Another Affair, Board Considers Dismissal, and Wall Street Begins Pricing in a “No Jensen” Scenario
The world's most valuable semiconductor company is experiencing the most severe corporate governance crisis since its establishment.
Crypto prices
More
