Key points
- BlackRock's Bitcoin and Ethereum ETFs saw a massive $158 million inflow in one day.
- Global monetary policies, including US rate cuts and Chinese stimulus, are boosting sentiment in the cryptocurrency market.
Share this article
BlackRock’s Bitcoin and Ethereum spot exchange-traded funds, iShares Bitcoin Trust (IBIT) and Ethereum Trust (ETHA), collectively attracted around $158 million in net inflows on Tuesday, amid a cryptocurrency market rally that saw Bitcoin surpass $64,000.
According data The IBIT fund, tracked by Farside Investors, recorded about $99 million in new capital, bringing its total net buying since launch to $21 billion.
IBIT performed well after a period of stagnation with days of minimal inflows, several days of no inflows and a few days of losses. Tuesday's increase marked IBIT's largest daily gain since August 23.
Rival funds run by Fidelity and Bitwise also posted gains of around $17 million each on Tuesday, while Grayscale’s Bitcoin Mini Trust received nearly $3 million in net inflows. No flows from other ETFs were reported.
With massive inflows into IBIT and additional capital into other funds, U.S. spot Bitcoin ETFs ended the day with roughly $136 million in net capital, extending their winning streak to four consecutive days.
Meanwhile, the Ethereum ETF Market The Ethereum market experienced a turnaround after investors withdrew over $79 million from Ethereum spot funds in the United States on Monday. Ethereum spot ETFs collectively attracted $62.5 million on Tuesday.
Flows turned positive as BlackRock’s ETHA raised over $59 million. VanEck’s Ethereum ETF registered nearly $2 million and Invesco’s Ethereum fund registered over $1 million yesterday.
Bitcoin Surges Past $64,000 Amid Global Monetary Easing
The cryptocurrency ETF's positive performance came amid rising Bitcoin price. Bitcoin hit a high of $64,700 on Tuesday evening before settling at around $64,200, Commercial view.
The rebound is closely linked to the easing of monetary policies in the world's major economies.
Last week, the US Federal Reserve (Fed) made an aggressive 50 basis point interest rate cut. Optimistic investors now expect a further rate cut by the end of the year, with a 61% chance of a 50 basis point reduction in November.
In addition to the Fed's monetary policy adjustments, China's monetary stimulus package, which was announced on Tuesday, is also seen as a positive catalyst for the cryptocurrency market.
China's recent policy adjustments contributed to a brief surge in Bitcoin's value, although the impact was modest compared to broader market movements.
The price of Bitcoin is now approaching the $65,000 mark, a high that has not been reached since early August. Analysts suggest that breaking through this threshold is crucial to confirming an uptrend.
Share this article
