Key Points
Spot Bitcoin ETFs Witness Surge
Spot Bitcoin exchange-traded funds (ETFs) in the U.S. observed a substantial rise in net positive flows.
Conversely, Ethereum spot ETFs saw no activity.
SoSoValue data (https://sosovalue.com/assets/etf/us-btc-spot) reveals that the 12 spot Bitcoin ETFs registered inflows of $235.19 million on October 7.
This was an increase of over nine times compared to the $25.59 million inflows noted the previous trading day.
Fidelity’s FBTC led the influx with $103.68 million in inflows.
It was closely followed by BlackRock’s IBIT, the largest spot Bitcoin ETF by net assets, with $97.88 million.
IBIT had zero flows the previous day, making this increase noteworthy.
Bitwise’s BITB continued its trend with $13.09 million in net inflows over three days.
Ark and 21Shares’ ARKB added $12.63 million.
Other Bitcoin ETFs also experienced inflows.
Bitwise’s BITB registered $13.09 million, extending its three-day streak of net inflows.
Ark and 21Shares’ ARKB followed closely with $12.63 million in net inflows.
VanEck’s HODL and Invesco’s BTCO reported more modest inflows of $5.37 million and $2.53 million, respectively.
Grayscale’s GBTC and the remaining spot BTC ETFs recorded zero net flows on the day.
The total trading volume across the 12 Bitcoin ETFs rose significantly to $1.22 billion on October 7 from the previous day’s levels.
Since their inception, these funds have collectively attracted a net inflow of $18.73 billion.
Market Sentiment Influenced by Political and Economic Factors
The inflows coincided with Bitcoin’s (BTC) price recovery to $63,000.
This reflects a 2% rise on October 7 from the previous day.
The positive market sentiment followed a brief decline triggered by escalating geopolitical tensions, notably the Iran-Israel conflict.
Bitcoin’s recovery also seems tied to developments in the U.S. political landscape and broader economic trends.
Events such as a rally in Butler, Pennsylvania, where former President Donald Trump appeared alongside Elon Musk, may have boosted optimism among investors.
Some analysts believe that Musk’s endorsement of Trump’s candidacy and the positivity among political supporters spilled over into markets, creating a positive feedback loop for Bitcoin.
The rally, along with unexpectedly strong U.S. employment figures, has bolstered confidence in Bitcoin.
Investors are assessing the intersection of political, economic, and market trends.
Despite the significant inflows, Bitcoin’s price did not remain steady throughout the day.
By the end of reporting on October 8, Bitcoin had dropped 1.8% to $62,332.
The broader cryptocurrency market saw over $218 million in liquidations.
Ethereum ETFs Record Zero Flow Day
In contrast to Bitcoin, the spot Ethereum ETFs saw a quiet day.
According to SoSoValue data (https://sosovalue.com/assets/etf/us-eth-spot), the nine spot Ethereum ETFs in the U.S. recorded zero inflows on October 7.
This was after registering modest net inflows of $7.39 million on the previous trading day.
Trading volume for these ETFs also shrank significantly, dropping to $118.43 million from $148.01 million on the prior day.
Ethereum’s (ETH) price also mirrored the broader market downturn, falling 2.9% to $2,417 at the time of reporting.
Investors remained cautious despite the surge in Bitcoin-related products.