Spot Bitcoin ETFs hit $817 Million Following Massive Inflows, Yet BTC Sheds 3.4%

Key takeaways

• On Tuesday, spot Bitcoin ETFs in the United States saw $817.5 million in daily net inflows following a crypto market pump.
• Bitcoin shed 3.4% of its price to $86,855 in the last 24 hours, signaling potential profit-taking by investors.
• Analysts suggest market volatility may rise depending on the upcoming CPI data release.

Spot Bitcoin ETFs Draw Record Inflows Amid Market Rally

On Tuesday, spot Bitcoin exchange-traded funds (ETFs) in the U.S. saw substantial inflows of $817.5 million. This came as the broader crypto market experienced a rally, with Bitcoin reaching a new all-time high of $89,956.

The $817.5 million in spot Bitcoin ETF inflows on Tuesday followed $1.1 billion in the previous day's inflows. The 12 spot Bitcoin ETFs recorded a trading volume of $5.7 billion. This figure marks a slight drop from Monday's volume of $7.3 billion and a significant rise compared to Friday's $2.8 billion.

Based on SoSoValue data, these movements show increasing interest in Bitcoin ETFs amid a rising market. BlackRock's IBIT led the inflows on Tuesday, drawing $778.3 million. The product has now accumulated $1.93 billion in inflows this week alone.

Fidelity's FBTC ETF contributed an additional $37.2 million in inflows. Other funds, like Grayscale's Mini Bitcoin Trust and VanEck's HODL, also posted positive flows, both logging over $10 million.

However, not all Bitcoin ETFs saw positive performance. Grayscale's GBTC, the second-largest spot bitcoin ETF by net assets, experienced a $17.8 million outflow. Similarly, Ark and 21Shares' ARKB saw net outflows of $5.4 million. Despite these outflows, the overall trend for Bitcoin ETFs has been positive.

Bitcoin BTC's Rally Pauses as Profit-Taking Takes Effect

Bitcoin's price surge seemed to lose steam on Tuesday, with the asset shedding 3.4% in the past 24 hours. Bitcoin was priced at $86,855 after briefly surpassing $90,000 earlier that day.

Bitcoin's rally paused with its first red candle appearing yesterday, following an intraday peak at $90,000," said Valentin Fournier, an analyst at BRN.

According to Fournier, the price pullback indicates that large investors may be taking profit, leading to a potential brief correction.

He explained, We believe this indicates some profit-taking by large investors, potentially leading to a brief correction before prices resume their upward momentum."

Fournier also stated that while the immediate downside risk exists, the market's overall upside potential remains stronger.

Currently, upside potential appears stronger than the immediate downside risk," he said.

However, he warned that the upcoming CPI release could inject volatility into the market if the numbers exceed expectations.

Ethereum ETFs See Strong Inflows as Ether Market Gains Momentum

While Bitcoin ETFs received significant attention, Ethereum ETFs also reported impressive inflows on Tuesday. Spot Ethereum ETFs posted net inflows of $135.9 million, marking their second-highest daily inflows since their launch.

BlackRock's ETHA led these inflows with $131.5 million, while Bitwise's ETHW saw nearly $17 million in contributions. Grayscale's Mini Ethereum Trust received $12.7 million in inflows. Grayscale's ETHE was the only spot ether ETF to experience negative flows, with $33.2 million exiting the fund.

Meanwhile, the cumulative total flows for the nine ether funds turned positive for the first time since their launch. The funds saw total inflows of $94.62 million, a stark contrast to the total outflows of $686 million reported on Sept. 23.

The Ethereum ETFs recorded a trading volume of $582.2 million on Tuesday, down from $913 million the day before. Despite the drop, Tuesday's trading volume marked the second-largest since July 29. These movements in Ethereum ETFs further reflect the dynamic shifts in the broader crypto market.

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