Overall, spot bitcoin ETFs have experienced significant inflows, with 12 funds amassing over $1.85 billion this week. Ark and 21Shares’ (BATS:ARKB) saw over $100 million in inflows. Grayscale’s (OTC:GBTC) recorded $45.70 million, while Fidelity’s (BATS:FBTC) had $11.69 million.
According to crypto analyst Rachael Lucas, per The Block, this trend is due to favorable macroeconomic conditions. When central banks reduce interest rates, investors explore alternative assets.
Thursday’s trading volume for bitcoin ETFs was approximately $1.47 billion, slightly lower than the previous day. Since January, cumulative net inflows have reached $20.66 billion, a milestone described by Bloomberg’s Eric Balchunas as “the most important metric in ETF world.”
Spot Ethereum (CRYPTO: ETH) ETFs also reported positive flows, with $48.41 million on Thursday. Fidelity’s (BATS:FETH) led with $31.12 million, followed by BlackRock’s (NASDAQ:ETHA) with $23.56 million. Despite these gains, Grayscale’s (OTC:ETHE) experienced $15.74 million in outflows.
Why It Matters: The surge in inflows Bitcoin ETFs comes as the cryptocurrency industry continues to grow according to important metrics.
According to a recent report by Coinbase and Glassnode, the crypto market is maturing, with successful spot ETFs and increased trading volumes cited as key growth drivers. Venture capital firm a16z found in a separate report that monthly active addresses are at all-time highs, up thrice from levels at the end of 2023.
The Securities and Exchange Commission had approved Bitcoin ETFs in January this year, following a controversial incident involving a hack of the SEC’s account.
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