Key Takeaways
- Bitcoin ETFs saw $274.6 million in inflows, the largest in 41 days.
- Fidelity's ETF led with $127.28 million, while Ethereum ETFs saw continued outflows.
- Analysts warn that institutional arbitrage may be driving the inflows rather than organic demand.
After weeks of continuous outflows, Bitcoin exchange-traded funds (ETFs) saw a reversal with a $274.6 million net inflow, signaling renewed investor interest.
Fidelity’s Bitcoin ETF (FBTC) led the surge with $127.28 million in inflows, followed by ARK Bitcoin ETF (ARKB) with $88.5 million.
BlackRock’s iShares Bitcoin Trust (IBIT) also recorded $42.3 million.
Grayscale & Ethereum ETFs
However, Grayscale’s Bitcoin Trust (GBTC), which has lost billions since converting to a spot ETF, saw no inflows, remaining at $0.
Meanwhile, Ethereum-based ETFs continued their decline, recording $7.3 million in net outflows for the ninth consecutive day.
Analyst caution
Despite the surge, analysts remain cautious. Just last week, Bitcoin ETFs had logged four straight weeks of net outflows exceeding $4.5 billion.
Broader market sentiment has also been weak, with total crypto outflows surpassing $800 million.
Institutional influence
Crypto entrepreneur Kyle Chassé suggested that large institutional players may be behind the ETF flows rather than organic demand.
Chassé added that price manipulation remains a factor, stating:
Some of it was purely for arbitrage,
Federal Reserve impact
The Federal Reserve’s upcoming policy decisions could further influence ETF demand.
Some investors anticipate a shift toward monetary easing, but analysts warn that expectations of immediate liquidity injections may be premature.
