TLDR
- Bitcoin ETFs recorded a $240M inflow on Thursday, reversing a six-day streak of outflows.
- BlackRock led the rebound with $112.4M added to its iShares Bitcoin Trust.
- Fidelity’s Wise Origin Bitcoin Fund saw $61.6M inflows during the recovery.
- Spot Ether ETFs reversed a six-day sell-off, gaining $12.51M on Thursday.
- Solana ETFs have seen $322M in inflows since their launch with no net outflows.
Bitcoin ETFs saw a major turnaround on Thursday, recording $239.9 million in net inflows. This followed a week of outflows that drained nearly $1.4 billion from the market. The reversal came after institutional investors showed renewed interest in Bitcoin products.
BlackRock Leads the Rebound in Bitcoin ETFs
The largest contribution to the inflow came from BlackRock. The asset manager added $112.4 million to its iShares Bitcoin Trust (IBIT). This followed a period of withdrawals that had affected major Bitcoin ETFs across the market.
Fidelity’s Wise Origin Bitcoin Fund (FBTC) saw an influx of $61.6 million. The ARK 21Shares Bitcoin ETF (ARKB) also benefited from the recovery, adding $60.4 million. In contrast, Grayscale’s GBTC showed no changes after experiencing persistent outflows since mid-October.
Solana and Ether ETFs Experience Mixed Results
Spot Ether ETFs also saw a reversal after a six-day sell-off. The products tracking Ether experienced withdrawals of approximately $837 million during the slump. On Thursday, however, spot Ether ETFs recorded a slight recovery with inflows of $12.51 million.
Solana ETFs, which launched in late October, continued to perform well. Since their launch, the products tracking Solana have gained $322 million in inflows. They have yet to experience any days of net outflows, showing strong investor interest.
Liquidity Drivers in the Crypto Sector
Wintermute, a crypto market maker, highlighted ETFs as a key liquidity pillar for the crypto sector. In a blog post, Wintermute pointed out that ETFs, stablecoins, and digital asset treasuries are essential to the market’s liquidity. The firm noted that while liquidity remains crucial, the inflows into these sectors have plateaued.
Schwab Asset Management’s recent survey revealed that 52% of respondents plan to invest in ETFs. Of that, 45% expressed an interest in crypto-linked ETFs, further indicating the growing popularity of crypto-related investment products.
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