Bitcoin ETFs Dominate: $332M Inflow Fuels BTC Price Rebound
Bitcoin ETFs Attract Massive Inflows, Outpacing Ethereum
The price of Bitcoin (BTC) has rebounded following a recent market dip, spurred by significant inflows into Bitcoin ETFs. On Tuesday, Bitcoin ETFs recorded $332.7 million in net inflows, signaling a strong return of institutional interest to the leading cryptocurrency.
According to data from SoSoValue, Fidelity's FBTC led the charge with $132.7 million in inflows, followed by BlackRock's IBIT at $72.8 million. Funds from Ark & 21Shares, VanEck, Invesco, Bitwise, and Grayscale also saw positive inflows.
Ethereum ETFs Experience Outflows
In contrast, spot Ethereum ETFs experienced a daily outflow of $135.3 million. Fidelity's FETH saw the largest withdrawal at $99.2 million, while Bitwise's ETHW fund experienced $24.2 million in outflows. This divergence suggests a shifting preference among institutional investors, with Bitcoin currently favored over Ethereum.
Previously, Ethereum ETFs had seen substantial inflows, such as BlackRock's Ethereum ETF absorbing nearly $315 million in a single session. However, recent outflows indicate a change in sentiment.
BTC Price Rebounds Amidst ETF Activity
The increased demand reflected in ETF inflows has coincided with a rebound in the BTC price. After dipping to around $107,250, Bitcoin has recovered to trade near $111,700.
Key Market Observations
- Crypto analyst Crypto Patel noted that ETFs now hold approximately 7% of Bitcoin’s total supply.
- BlackRock manages over 746,000 BTC, solidifying its position as the largest Bitcoin ETF operator globally.
MicroStrategy recently increased its Bitcoin holdings, purchasing 4,048 BTC for $449.3 million at an average price of $110,981. This brings their total holdings to 636,505 BTC, valued at nearly $47 billion.
Governments are also entering the Bitcoin space, with the UAE identified by Arkham as a top-four sovereign Bitcoin holder, managing over 6,300 BTC through its Citadel Mining operation.
Potential Resistance Ahead
Despite the positive momentum, crypto analyst Ali Martinez points out that Bitcoin faces resistance at $110,700. Failure to break through this level could lead to a price correction back to $107,200 or even $103,000.
The inflows into Bitcoin ETFs reflect renewed institutional confidence. While Ethereum's weaker fund flows suggest caution among investors, some analysts view this as a potential buying opportunity. However, Bitcoin currently exhibits stronger bullish momentum.