Spot Bitcoin ETFs Attract $294 Million in Inflows Amid BTC Price Decline

Spot Bitcoin ETFs Attract $294 Million in Inflows Amid BTC Price Decline

Spot Bitcoin exchange-traded funds (ETFs) witnessed remarkable inflows totaling $294.29 million on October 21 despite a decline in Bitcoin's price. BlackRock’s IBIT ETF emerged as a standout performer leading the inflows with an impressive $329.03 million according to data from SoSo Value. This surge has allowed the fund to accumulate over $1 billion in net inflows within the past week as investors seek exposure to Bitcoin.

The IBIT ETF's strong performance has propelled it to surpass Vanguard’s Total Stock Market ETF in year-to-date inflows securing the third position overall in terms of inflows. Fidelity’s FBTC fund also contributed to the positive trend reporting $5.9 million in inflows on October 22 further highlighting growing investor confidence in spot Bitcoin ETFs.

However not all ETFs experienced this influx of capital. Several competing funds including Bitwise’s BITB ARK’s ARKB VanEck’s HODL and Grayscale’s GBTC faced significant redemptions exceeding $40 million. These funds struggled to attract new investments amidst the day’s trading.

Despite the overall positive sentiment toward Bitcoin-focused ETFs the leading cryptocurrency experienced a 3.25% dip during trading. Bitcoin's price fell from an intraday high of $69,227 to a low of $66,975 leading to substantial liquidations across the crypto market. Bitcoin alone accounted for $40.53 million of the total $167 million in long liquidations while Ethereum faced even larger liquidations totaling $55.9 million.

The contrast between the strong performance of Bitcoin-focused ETFs and the challenges faced by Ethereum-based ETFs was notable. On October 21 spot Ethereum ETFs recorded net outflows of $20.8 million ending a three-day streak of inflows. Grayscale’s ETHE fund led these outflows with $29.58 million being withdrawn. Nevertheless some losses were offset by inflows into other Ethereum ETFs including BlackRock’s ETHA and VanEck’s ETHV which saw inflows of $4.86 million and $3.92 million respectively.

In a broader context the digital asset investment market demonstrated renewed optimism with total inflows reaching $2.2 billion for the week marking the largest increase since July. This uptick in investor sentiment is attributed to expectations of a Republican victory in the upcoming U.S. elections which could be perceived as favorable for digital assets.

The U.S. market led the inflows with $2.3 billion while regions like Canada Sweden and Switzerland experienced minor outflows likely due to profit-taking activities. Bitcoin remained the primary contributor to these inflows securing $2.13 billion while short Bitcoin products also saw notable inflows of $12 million marking the largest since March. Meanwhile Ethereum-based products attracted $58 million in inflows while altcoins such as Solana Litecoin and XRP experienced smaller gains.