Emily Walker
This week, US-based spot Bitcoin ETFs (exchange-traded funds) faced a downturn, concluding a positive inflow streak of $4.7 billion that lasted seven days. On Monday, January 27, these crypto investment products experienced nearly $460 million in withdrawals.
Nonetheless, Bitcoin ETFs are showing signs of recovery, ultimately attracting hundreds of millions in new investments by the week’s end. This surge in institutional interest occurs despite a challenging market climate, signaling a renewed faith in Bitcoin among investors.
Bitcoin ETFs Start a New $1 Billion Inflow Streak Over Four Days
Recent market information indicates that the US-based spot Bitcoin ETF sector recorded a net capital inflow of $318 million on Friday, January 31. This marked the fourth consecutive day of net inflows for these products following the previous week’s withdrawals.
Among these, BlackRock’s iShares Bitcoin Trust (ticker: IBIT) attracted the most significant inflow, drawing in an impressive $363.83 million on Friday. After a period of slower activity, the trillion-dollar asset manager’s fund seems to be regaining momentum.
Following closely, the ARK 21Shares Bitcoin ETF (ticker: ARKB) reported a net inflow of $35.5 million that same day. Additionally, VanEck’s Bitcoin ETF (HODL) managed to secure $5.76 million in inflows, rounding out the positive performances.
In contrast, the Bitwise Bitcoin ETF (BITB) experienced a net outflow of $56.03 million on Friday. This fund has struggled for consistent performance since the year’s start, although it managed seven inflow days in January. Grayscale’s GBTC also saw an outflow of $30.59 million.
Despite these challenges, the $318 million inflow on a single day brought the total weekly inflow for US-based Bitcoin ETFs to $556 million. While this figure is considerably lower than in previous weeks, it has nevertheless initiated a new trend of positive inflows.
Ether ETFs See Positive Trends Again
Similarly, the US-based Ethereum ETF market also reported positive inflows to end the week, reversing recent struggles faced by ETH exchange-traded funds.
The spot Ethereum ETFs recorded a net inflow of $27.78 million, even though the Grayscale Ethereum Trust (ETHE) faced significant outflows of $31.92 million. BlackRock’s ETHE ETF was the front-runner, achieving a robust inflow of $57.27 million on Friday.
Additionally, VanEck’s ETHV ETF saw an inflow of $2.43 million. However, this positive activity was insufficient to avert a total weekly outflow of $45.5 million for Ethereum funds.
Image source: iStock, chart from TradingView