BlackRock Bitcoin, Ethereum ETFs See Net Inflows of $158M Amid Market Recovery

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BlackRock’s Bitcoin and Ethereum exchange-traded funds iShares Bitcoin Trust (IBIT) and Ethereum Trust (ETHA) collectively drew about $158 million in net inflows on Tuesday amid a rally in the crypto market that led to Bitcoin rising above $64,000.

According to data tracked by Farside Investors, the IBIT fund saw about $99 million in new capital, bringing total net purchases since launch to $21 billion.

IBIT performed strongly after a period of stagnation with days of minimal inflow reported, several days with no flows and several days with bleeding. Tuesday’s rise marked IBIT’s biggest single-day inflow since August 23.

Competing funds managed by Fidelity and Bitwise also saw gains of about $17 million each Tuesday, while Grayscale’s Bitcoin Mini Trust received net inflows of nearly $3 million. No flows from other ETFs were reported.

With IBIT’s massive inflows and additional capital in other funds, US spot Bitcoin ETFs ended the day with about $136 million in net capital, extending their winning streak to four straight days.

Meanwhile, the Ethereum ETF market saw a turnaround after investors pulled more than $79 million from US Ethereum spot funds on Monday. Spot Ethereum ETFs collectively raised $62.5 million on Tuesday.

Flows turned positive as BlackRock’s ETHA cashed in over $59 million. VanEck’s Ethereum ETF saw nearly $2 million and Invesco’s Ethereum fund saw more than $1 million yesterday.

Bitcoin surpassed $64,000 amid global monetary easing

The crypto ETF’s positive performance came amid rising Bitcoin prices. Bitcoin hit a high of $64,700 late on Tuesday before settling around $64,200, on TradingView.

Growth is closely linked to the easing of monetary policies by major global economies.

Last week, the US Federal Reserve (Fed) made an aggressive interest rate cut of 50 basis points. Hopeful investors now see a further rate cut by the end of the year, with odds rising to 61% for a 50 basis point cut in November.

Besides the Fed’s monetary policy adjustments, China’s monetary stimulus package that came on Tuesday is also seen as a positive catalyst for the crypto market.

China’s recent policy adjustments contributed to a brief spike in Bitcoin’s value, although the impact was modest compared to broader market movements.

Bitcoin is now targeting the $65,000 mark, a peak not seen since early August. Analysts suggest that crossing this threshold is crucial for confirming an optimistic trend.

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