Bitcoin ETFs Outpaced Gold Demand with Positive Inflows

Strong Inflows from Bitcoin ETFs

Bitcoin exchange-traded funds (ETFs) recorded a positive flow recently under the shadow of easing gold demand. In the U.S., net inflows into spot Bitcoin ETFs amounted to $477.2 million. This situation indicates that investors continue to turn towards crypto assets.

High-Performing Funds

According to SoSoValue data, nine out of twelve Bitcoin funds recorded net inflows. BlackRock's IBIT fund led with $210.9 million, while Ark & 21Shares’ ARKB attracted $162.8 million, and Fidelity’s FBTC saw an inflow of $34.15 million.

Improvement in Institutional Sentiment

Nick Ruck, director of LVRG Research, stated, "The return to yesterday’s net positive flows signals potential stability in institutional sentiment after recent volatility." This situation shows that investor confidence in crypto assets has not diminished amid economic uncertainties.

Increase in Ethereum ETFs

Spot Ethereum ETFs also showcased similar success with a net inflow of $141.6 million. Fidelity’s FETH fund stood out with an inflow of $59 million, while other significant funds like BlackRock, Grayscale, and VanEck contributed as well.

Increase in Cryptocurrency Market Volume

Bitcoin ETFs recorded a total trading volume of $7.41 billion yesterday. Throughout October, trading volumes for the funds varied between $5 billion and $9.78 billion, while last month, volumes ranged between $2 billion and $4 billion.

Ruck stated, "The increase in monthly trading volumes indicates a rise in institutional participation. Traditional investors are allocating more resources to digital assets." This situation contributes to the deepening of the market and an increase in risk appetite.

Decline in Gold Demand

Recently, ongoing trade tensions between the U.S. and China have led to fluctuations in the crypto market. In particular, a significant drop of 5.9% in spot gold prices may encourage investors to turn towards alternative risky assets like crypto.

The information provided here does not constitute investment advice.