Bitcoin exchange-traded funds (ETFs) registered an impressive $294.29 million in net inflows, demonstrating resilient investor confidence even as Bitcoin’s price dipped below the $67,000 mark. This surge in inflows marks a remarkable trend for the ETF market, continuing a streak of positive momentum despite recent price fluctuations in the cryptocurrency market.

Bitcoin’s Price Movement

Bitcoin experienced a 3.25% decline on the same day, dropping from an intraday high of $69,227 to a low of $66,975. This downward movement contributed to a wave of liquidations across the crypto space, with over $167 million in long positions liquidated. Bitcoin alone accounted for approximately $40.53 million of those liquidations, making it the second-largest contributor to liquidations after Ethereum, which saw $55.9 million in long liquidations.

At the time of this report, Bitcoin was trading around $67,500, reflecting a 2.3% decrease in the past 24 hours. The decline in price has raised questions about the market’s short-term direction, but it hasn’t deterred investors from seeking exposure to Bitcoin through ETFs.

Robust ETF Inflows Amid Market Volatility

Despite Bitcoin’s recent downturn, the demand for spot Bitcoin ETFs has remained robust. These funds have now recorded seven consecutive days of inflows, with the U.S.-based ETFs having concluded the previous week with over $2.1 billion in total inflows. The latest addition of $294.29 million at the beginning of this week underscores a strong investor appetite for Bitcoin exposure.

Leading the charge is BlackRock’s IBIT, which attracted a remarkable $329.03 million on October 21. The IBIT fund has quickly emerged as a favorite for investors, garnering over $1 billion in net inflows last week alone. This staggering figure accounted for half of all U.S. spot Bitcoin ETF inflows during that period.

IBIT Outshines Competitors

The impressive performance of BlackRock’s IBIT has allowed it to surpass Vanguard’s Total Stock Market ETF in year-to-date inflows, making it the third-largest ETF overall, according to Bloomberg ETF analyst Eric Balchunas. The rapid growth of IBIT indicates a growing preference among investors for institutional-grade products that offer exposure to Bitcoin without the complexities of directly holding the asset.

In contrast, other ETFs have not fared as well. Fidelity’s FBTC reported modest gains of around $5.9 million in inflows on the same day, while several competing funds, including Bitwise’s BITB, ARK’s ARKB, Van Eck’s HODL, and Grayscale’s GBTC, experienced redemptions totaling over $40 million. This disparity in performance highlights the competitive landscape among Bitcoin ETFs, where investor sentiment can dramatically influence inflows and outflows.

Ethereum ETFs Experience Outflows

While Bitcoin ETFs are enjoying strong inflows, the scenario is markedly different for Ethereum-based ETFs. On October 21, spot Ethereum ETFs faced $20.8 million in net outflows, ending a three-day streak of positive inflows. The leading contributor to these outflows was Grayscale’s ETHE, which saw $29.58 million exit the fund.

Though some Ethereum ETFs, such as BlackRock’s ETHA and Van Eck’s ETHV, managed to offset some losses with inflows of $4.86 million and $3.92 million, respectively, many other Ethereum funds remained inactive, reflecting a cautious investor sentiment in the face of market volatility.

Conclusion

The remarkable $294 million inflow into spot Bitcoin ETFs highlights a strong and growing confidence among investors in the face of Bitcoin’s recent price fluctuations. As institutional interest continues to rise, particularly in products like BlackRock’s IBIT, the landscape of cryptocurrency investments is evolving. While Bitcoin ETFs thrive, Ethereum ETFs face a different reality, signaling the need for investors to remain vigilant and adaptable in a rapidly changing market. As the cryptocurrency market continues to fluctuate, all eyes will be on how these trends develop in the coming days.