Bitcoin Spot ETFs Celebrate $870M Inflows as Price Soars to $72K

Key Points:

• Bitcoin Spot ETFs saw a massive $870 million inflow on October 29, 2024.
• BlackRock’s IBIT ETF led the charge with $643 million in inflows, followed by Fidelity’s FBTC and Bitwise’s BITB.
• Ethereum Spot ETFs lagged behind with a modest $7.65 million inflow, highlighting Bitcoin’s stronger momentum.

On October 29, 2024, Bitcoin Spot ETFs in the U.S. experienced a significant surge, with a massive net inflow of over $870 million in a single trading session. 

Bitcoin Spot ETFs Surge with $870 Million Inflow Amid Bitcoin Price Rally

This is the largest single-day inflow into Bitcoin Spot ETFs since June 5, 2024, showing renewed investor interest and confidence in the potential of Bitcoin. The flow came when the price of Bitcoin soared to a year-high of $72,200, keeping strong upward momentum.

Data from SoSoValue and Farside Investors indicate that the majority of the inflow was driven by leading ETFs, with BlackRock’s IBIT ETF leading the pack, contributing $643 million to the total. Fidelity’s FBTC ETF followed with $134 million, and Bitwise’s BITB ETF saw $52.5 million in inflows.

Other key inflows came from Ark & 21Shares’ ARKB ETF, which saw $12.4 million, and the HODL ETF from VanEck added $16.5 million. The only blood in the water came from Grayscale’s GBTC ETF, with a negative outflow of $17.3 million.

The cumulative assets held by U.S. Bitcoin Spot ETFs now total a staggering $23.28 billion, with $4.75 billion traded on October 29 alone. This reflects growing investor demand for Bitcoin exposure, as the total net assets held by these ETFs have reached $72.55 billion, equivalent to 5.07% of Bitcoin’s overall market capitalization.

Eric Balchunas, a Bloomberg ETF expert, noted that BlackRock’s IBIT ETF alone traded $3.3 billion on October 29, which marked its highest volume in six months. According to him, this surge was due to FOMO as investors scrambled for the chance to make profits during the price rally of Bitcoin.

As of October 29, BlackRock’s IBIT ETF holds 408,253.1 Bitcoin, valued at $29.54 billion, solidifying its position as the strongest Bitcoin ETF in the market. The recent inflows, combined with Bitcoin’s upward trajectory, indicate that this momentum could continue in the near future (according to Treasuries). 

Corresponding to the huge cash flow above, it is not surprising to see Bitcoin price accelerating to the threshold of 72,200 USD, up nearly 2% in the past 24 hours (according to Coingecko).

Ethereum Spot ETFs Lag Behind Bitcoin

While giant inflows were seen in Bitcoin ETFs, Ethereum Spot ETFs were far more muted. According to SoSoValue, on the same day, Ethereum Spot ETFs saw a net inflow of $7.65 million, which reveals a trend that Ethereum has mostly been witnessing since the recent surge: underperforming Bitcoin.

Despite growing excitement around Ethereum’s upcoming upgrades, its spot ETFs have not garnered the same level of institutional backing as Bitcoin. 

Sean Stein Smith, Associate Professor at City University of New York added, “Ethereum ETFs have trailed behind Bitcoin’s performance with Ethereum-based ETFs up 15% so far in 2024 while Bitcoin has risen by 50%”.

According to Coingecko, Ethereum changed hands at around $2,640 at the time of writing – up only 1% over the last 24 hours.