U.S. spot Bitcoin ETFs rebound with $14.4 million inflows; Fidelity’s FBTC leads surge

U.S. spot Bitcoin exchange-traded funds (ETFs) experienced outflows for a week before seeing a reversal on June 25. The 11 ETFs trading in the United States amassed net inflows of $14.4 billion since launching in January, with Fidelity’s FBTC leading the way.

On Wednesday, spot Bitcoin ETFs reversed their seven-day outflow trend. The group secured the significant net inflows after experiencing $1.1 billion in outflows the previous day. 

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Fidelity’s FBTC emerged as the frontrunner, attracting $51 million in net inflows. It was followed by Bitwise Bitcoin ETF (BITB), which recorded $15 million in gains, and the VanEck Bitcoin Trust ETF (HODL) with net inflows of $4 million. This is according to sosovalue.xyz metrics.

In contrast, The Grayscale Bitcoin Trust (GBTC) saw net outflows of $30.3 million, while the ARK 21Shares Bitcoin ETF reported $6 million in net outflows.

Presently, the 11 spot Bitcoin ETFs hold almost $52 billion in BTC reserves. Amidst ongoing withdrawals from U.S. spot Bitcoin ETFs, the evolving investor sentiment reflects a prudent stance in response to market volatility. Despite these challenges, the substantial reserves maintained by these funds highlight a strong foundational confidence in Bitcoin’s long-term value.

ETH ETFs expected to attract a small fraction of investments compared BTC ETFs

ETH price saw a modest 1% uptick today, riding on the optimism surrounding the imminent approval of the U.S. Spot Ethereum ETF. 

The anticipation is soaring, as market insiders expect the Ether ETF to begin trading as early as next week, with July 2 highlighted as a critical date.

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Still, recent insights from 10X Research suggest that the Ethereum ETF might only attract a minimal fraction of the investment seen in U.S. Spot Bitcoin ETFs.

Spot Bitcoin ETFs vs Ethereum ETFs

Bitcoin ETFs accumulated nearly $60 billion worth of BTC within 6 months of launch. Based on conservative estimates, Ethereum ETFs are likely to attract approximately 50% of that amount within the same timeframe. The figures could even be higher than $30 billion due to asset re-hypothecation and passive income opportunities presented by the Proof-of-Stake consensus.

Yesterday, investment manager VanEck filed a Form 8-A with the SEC for its spot Ether ETF, bringing it one step closer to launching.

According to TradingView data, Bitcoin’s price rose from $61,350 on June 25 to $61,730 at the time of publication, a 0.6% increase. VanEck‘s head  of digital assets research announced in a post on X:

VanEck aims to be a leader on crypto ETF fees even if it means we lose money at the outset.

VanEck

He said that the strategy has been to make money from the increased volume of decentralized finance.

He added that if the spot Ethereum ETFs drive renewed interest in the asset, elevated network activity would boost the price of ether and benefit VanEck’s holdings. He also mentioned possible bets on Ethereum DeFi projects like Curve or Aave.

Currently, Ethereum’s price rose 1.12% and traded at $3,385.25. However, its trading volume dropped 44% to $12.06 billion from yesterday, while its price touched a high of $3,424.58. Furthermore, Ethereum Futures Open Interest rose 1% to $15.08 billion, while ETH Options Open Interest surged 1.6% to $6.2 billion.

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Cryptopolitan Reporting by Florence Muchai