Key takeaways
- BlackRock’s Bitcoin and Ethereum ETFs saw a massive inflow of $158 million in one day.
- Global monetary policies, including rate cuts in the United States and stimulus measures from China, are boosting confidence in the cryptocurrency market.
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BlackRock’s Bitcoin and Ethereum exchange-traded funds, the iShares Bitcoin Trust (IBIT) and the Ethereum Trust (ETHA), collectively attracted about $158 million in net inflows on Tuesday as part of a cryptocurrency market rally that saw Bitcoin surge above $64,000.
According to data tracked by Farside Investors, the IBIT fund has recorded about $99 million in new capital, bringing its total net purchases since its launch to $21 billion.
IBIT performed well after a period of stagnation with minimal inflow days reported, several days of no flow and a few days of bleeding. Tuesday’s gain marked IBIT’s largest single-day inflow since August 23.
Competing funds managed by Fidelity and Bitwise also saw gains of about $17 million each on Tuesday, while Grayscale’s Bitcoin Mini Trust took in nearly $3 million in net inflows. No flows were reported by other ETFs.
Thanks to massive inflows from IBIT and additional capital in other funds, U.S. spot Bitcoin ETFs ended the day with approximately $136 million in net capital, extending their winning streak to four consecutive days.
Meanwhile, the Ethereum ETF market saw a reversal after investors pulled more than $79 million from U.S. spot Ethereum funds on Monday. Spot Ethereum ETFs collectively attracted $62.5 million on Tuesday.
Flows have turned positive, with BlackRock’s ETHA garnering over $59 million. VanEck’s Ethereum ETF saw nearly $2 million and Invesco’s Ethereum fund saw over $1 million yesterday.
Bitcoin Surges Above $64,000 Amid Global Monetary Easing
The crypto ETF’s positive performance came amid a sharp rise in the price of Bitcoin. Bitcoin hit a high of $64,700 late Tuesday before settling around $64,200, according to TradingView.
This increase is closely linked to the easing of monetary policies in the world’s major economies.
Last week, the US Federal Reserve (Fed) aggressively cut interest rates by 50 basis points. Bullish investors are now expecting another rate cut by the end of the year, with a 61% probability of a 50 basis point cut in November.
In addition to the Fed’s monetary policy adjustments, China’s monetary stimulus plan, unveiled on Tuesday, is also seen as a positive catalyst for the cryptocurrency market.
Recent Chinese policy adjustments have contributed to a brief surge in Bitcoin’s value, although the impact has been modest compared to broader market movements.
Bitcoin is now targeting the $65,000 mark, a high not seen since early August. Analysts suggest that breaking above this threshold is crucial to confirming a bullish trend.
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