Are Bitcoin and Ethereum ETFs Showing Signs Of Overheating

December 12, 2024 09:04 AM EST | By Team Kalkine Media
 Are Bitcoin and Ethereum ETFs Showing Signs Of Overheating
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Highlights

  • Bitcoin ETFs reported a consistent streak of net inflows over the past two weeks, increasing their total net assets.
  • Ethereum ETFs followed a similar trend, with inflows rising steadily and contributing significantly to their total net assets.
  • Fidelity and Blackrock ETFs emerged as key contributors to the ongoing inflow streaks for Bitcoin and Ethereum.

Bitcoin cryptocurrency exchange-traded funds (ETFs) have seen remarkable net inflows over the past two weeks, reflecting strong market interest. According to data from Sosovalue, Bitcoin spot ETFs achieved sustained net inflows for consecutive trading days, significantly boosting their total net assets. The Fidelity ETF (FBTC) recorded the highest daily net inflow, contributing substantially to the total amount. Over the observed period, Bitcoin ETFs saw their net assets increase to a level representing a notable portion of Bitcoin’s market capitalization. This inflow activity indicates growing interest from both institutional and retail participants in Bitcoin ETFs, solidifying their role as an accessible pathway to cryptocurrency investments.

Ethereum ETFs Extend Inflow Streak

Ethereum ETFs followed a similar trajectory, registering consecutive days of net inflows and driving an impressive increase in total net assets. The streak extended over nearly two weeks, underlining sustained demand for these financial products.

Blackrock’s ETF (ETHA) led the daily net inflows, marking itself as a key player in the Ethereum ETF segment. The cumulative inflows over this period contributed significantly to Ethereum ETFs’ total assets, now representing a meaningful percentage of Ethereum’s market capitalization.

This trend reinforces the growing adoption of Ethereum-based ETFs as an attractive option for gaining exposure to the cryptocurrency market.

Contributions to Revenue

ETFs such as BTCW, IBIT, and BTCO have demonstrated their pivotal roles in revenue generation for their respective firms. BTCW accounted for a significant portion of Wisdomtree’s revenue, while IBIT and BTCO contributed prominently to Blackrock and Invesco, respectively.

The consistent inflows into Bitcoin and Ethereum ETFs have captured market attention, highlighting their potential impact on broader cryptocurrency adoption and price stability. Market participants remain attentive to how these inflow streaks may influence longer-term market dynamics in the cryptocurrency space.


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