Spot Bitcoin ETF inflows surge nine-fold, Ethereum ETFs stall

On Oct. 7, spot Bitcoin exchange-traded funds in the US saw a significant increase in net positive flows, while Ethereum spot ETFs saw a complete halt, according to data from SoSoValue. The 12 spot Bitcoin ETFs saw inflows of $235.19 million, a ninefold increase from the previous trading day’s $25.59 million. Fidelity’s FBTC led the charge with $103.68 million in inflows, followed by BlackRock’s IBIT, the largest spot Bitcoin ETF.

Other Bitcoin ETFs witnessed inflows, including Bitwise’s BITB, which received $13.09 million, extending its three-day streak of net inflows. Ark and 21Shares’ ARKB were close behind with $12.63 million in net inflows, while VanEck’s HODL and Invesco’s BTCO reported more moderate inflows of $5.37 million and $2.53 million, respectively.

Meanwhile, Grayscale’s GBTC and the remaining spot BTC ETFs had nil net flows for the day. Total trading activity across the 12 Bitcoin ETFs increased significantly to $1.22 billion on October 7 from the previous day’s levels. These funds have received a net inflow of $18.73 billion since their establishment.

Political and economic factors drive sentiment

The inflows corresponded with Bitcoin’s btc-1.46% recovery to $63,000, representing a 2% increase over the previous day on October 7. The strong market attitude followed a brief dip caused by rising international tensions, most notably the Iran-Israel dispute. While global uncertainty weighed on markets, Bitcoin’s resurgence appears to be linked to changes in the United States’ political scene and larger economic trends.

Recent events, such as a rally in Butler, Pennsylvania featuring former President Donald Trump and Elon Musk, may have boosted market confidence. Musk’s endorsement of Trump’s candidacy energised political supporters, which some analysts say spilt over into markets, resulting in a positive feedback loop for Bitcoin.

This rise, combined with unexpectedly positive US job data, has boosted investor confidence in Bitcoin as they consider the convergence of political, economic, and market dynamics.

Despite huge inflows, Bitcoin’s price fluctuated throughout the day. By the end of reporting on October 8, Bitcoin had fallen 1.8% to $62,332, and the broader cryptocurrency market had seen almost $218 million in liquidations.

Ethereum ETFs log zero flow day

In contrast to Bitcoin, the spot Ethereum ETFs saw a quiet day. According to SoSoValue data, the nine spot Ethereum ETFs in the U.S. recorded zero inflows on Oct. 7, after registering modest net inflows of $7.39 million on the previous trading day. Trading volume for these ETFs also shrank significantly, dropping to $118.43 million from $148.01 million on the prior day. Ethereum’s eth-1.99% Ethereum price also reflected the broader market downturn, falling 2.9% to $2,417 at the time of reporting, as investors remained cautious despite the surge in Bitcoin-related products.

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