Bitcoin (BTC) and Ethereum (ETH) ETFs have reported substantial inflows, marking the highest levels in several weeks amid growing optimism regarding a recovery in the cryptocurrency market. Investors are hopeful for a more favorable October, following the historically poor performance of Bitcoin in September.
On September 27, crypto investors purchased 7,526 Bitcoin and 22,310 Ethereum, leading to net inflows of $494.4 million and $58.7 million for Bitcoin and Ethereum ETFs, respectively. According to Spotonchain, this influx propelled total weekly flows to their highest levels in weeks, with Bitcoin ETFs achieving a total of $1.11 billion in positive flows—the largest weekly inflow since July 19. Ethereum ETFs also saw significant activity, with total inflows reaching $84.6 million, the largest since August 9.
Data from Farside Investors highlights that BlackRock’s IBIT ETF attracted the most significant inflows daily, except for Monday, where Fidelity’s FBTC secured $24.9 million in positive flows against BlackRock’s $11.5 million.
Since their introduction in the US market in January 2024, spot Bitcoin ETFs have drawn significant interest from institutional investors. These ETFs offer a seamless way to include Bitcoin in investment portfolios, avoiding the complexities of direct purchases and secure storage. As reported by BeInCrypto, over 1,000 institutional investors have engaged with Bitcoin ETFs within just two 13F filing periods, underscoring the market's positive response.
Despite challenges in the Ethereum ETF sector, where issuers continue to struggle, the overall sentiment towards cryptocurrency remains optimistic. Currently, Bitcoin is trading well above $65,500, reflecting investor confidence as they anticipate a market recovery. Analysts suggest that Bitcoin's price performance is closely linked to broader economic indicators that signal increasing liquidity. For instance, China's potential fiscal support and the recent interest rate cuts by the US Federal Reserve are seen as favorable for risk assets.
The recent inflows into Bitcoin and Ethereum ETFs highlight a renewed interest in cryptocurrencies as investors remain hopeful for a recovery in the market. With key economic factors supporting this trend, October may prove to be a pivotal month for BTC and ETH.
