The recent surge in Bitcoin and Ethereum Exchange Traded Funds (ETFs) has made significant waves in the cryptocurrency market. On December 5th, these ETFs registered substantial inflows, with Bitcoin ETFs recording 6,501 $BTC and Ethereum ETFs garnering 41,414 $ETH, according to data from Lookonchain, an on-chain analytics platform.
Bitcoin ETFs marked a net inflow of 6,501 $BTC on December 5th which is nearly $670.2M. Leading the pack was BlackRock, whose Bitcoin ETF obtained an impressive 5,801 $BTC, equivalent to approximately $598.02M. This surge has boosted BlackRock’s total Bitcoin holding to a staggering 513,438 $BTC, or around $52.93B. Meanwhile, Fidelity’s Bitcoin ETF saw an inflow of 175 $BTC, further underlining the growing institutional interest in cryptocurrency.
In addition, Bitwise Bitcoin ETF reported an inflow of 65 $BTC, while Vaneck Bitcoin Trust experienced an inflow of 170 BTC. The Invesco Galaxy Bitcoin ETF added another 303 $BTC. However, not all Bitcoin ETFs enjoyed inflows, with ARK 21Shares Bitcoin ETF and Grayscale Bitcoin Trust recording significant outflows of 4 $BTC and 9 $BTC, respectively. Three other Bitcoin ETFs saw no change in their holdings.
In the case of Ethereum, ETFs also noted massive inflows, with a total of 41,414 $ETH, or approximately $162.8M. BlackRock’s Ethereum ETF led the way, with an inflow of 32,109 $ETH, equivalent to around $126.22M. This addition takes BlackRock’s overall Ethereum holdings to 760,979 $ETH, or roughly $2.99B. Further bolstering the Ethereum ETF market, Fidelity Ethereum Fund secured an inflow of 10,500 $ETH, and the Invesco Galaxy Ethereum ETF saw an addition of 671 $ETH. Contrarily, Grayscale Ethereum Trust experienced an outflow of nearly 1,865 $ETH, while five other Ethereum ETFs recorded no inflows.
This influx of capital into both Bitcoin and Ethereum ETFs signals a growing institutional interest in these digital assets. According to Lookonchain, large investors are increasingly viewing ETFs as a secure and regulated vehicle for gaining exposure to digital assets, without the complexities associated with direct cryptocurrency ownership. This uptick in interest seems to correlate with the recent price spikes of Bitcoin, which surged above $100,000, and Ethereum, which steadily climbed to $6,000.
This trend could potentially mark a shift in the cryptocurrency market, as institutional investors increasingly turn to ETFs to gain exposure to Bitcoin and Ethereum. However, it remains to be seen how this will impact the broader cryptocurrency market in the long run.
