The cryptocurrency market witnessed a significant surge last week, driven by substantial inflows into Bitcoin and Ethereum exchange-traded funds (ETFs). Experts attribute this growing interest to increasing institutional demand as these digital assets continue to attract attention on Wall Street.
Record Inflows into Bitcoin ETF
- Bitcoin ETFs saw net inflows of $2.7 billion, pushing BTC to an all-time high of nearly $119,000.
- Ethereum ETFs added $908 million, resulting in a 17% increase in ETH, exceeding $3,000.
- BlackRock’s IBIT and ETHA funds were at the forefront of this trend, indicating strong institutional interest in cryptocurrencies.
Investor appetite for exposure to cryptocurrencies through ETFs hit new heights last week, focusing primarily on Bitcoin. Over the course of five trading days, Bitcoin ETFs attracted more than $2.7 billion in net inflows.
This capital influx marked one of the strongest weekly performances for these financial vehicles, reflecting the growing institutional demand with Wall Street taking keen interest. Notably, data from FarSide Investors indicated that Thursday and Friday were particularly active days.
On Thursday, Bitcoin ETFs recorded their second-largest daily inflow in 18 months, totaling $1.18 billion. Key contributors included BlackRock’s IBIT, which secured $448.5 million, followed by Fidelity’s FBTC at $324.3 million and ARK Invest’s ARKB, which attracted $268.7 million.
The momentum continued into Friday with an additional $1.03 billion in inflows, led decisively by BlackRock’s IBIT, which accounted for $953.5 million, significantly outpacing ARKB, which garnered only $23.5 million.
The week saw consistent positive inflows, with $216.5 million on Monday, $80.1 million on Tuesday, and $215.7 million on Wednesday. This resulted in a total net influx of $2.72 billion for the week, underscoring the accelerated pace of institutional adoption of cryptocurrencies.
Remarkably, since June 9, these funds have only experienced one day of net outflows (on July 1).
Ethereum ETFs Experience Significant Growth
Ethereum-based ETFs also recorded impressive inflows last week, benefiting from heightened investor confidence ahead of their first anniversary. According to FarSide data, these funds brought in $908.1 million in net inflows for the week.
Thursday emerged as a standout day, setting a record for Ethereum ETFs with $383.1 million in inflows. Notably, BlackRock’s ETHA dominated this number, contributing over $300 million. The following day, the ETHA continued its strong performance, capturing $137.1 million of a total $204.9 million influx.
Earlier in the week, inflows included $211.3 million on Wednesday, while Monday and Tuesday accounted for $62.1 million and $46.7 million, respectively. This sustained influx into Ethereum funds contributed to a significant rise in ETH prices.
Beginning the week around $2,500, Ethereum surged past $3,000 by Friday. Although it dipped slightly below that threshold since then, the asset remains up over 17% for the week.
Market Response to Institutional Momentum
The substantial influx into these ETFs has had a direct impact on the underlying asset prices. Bitcoin skyrocketed by more than $10,000 last week, reaching an unprecedented high of nearly $119,000 on Friday. Similarly, Ethereum recorded its best performance in months, bolstered by the significant capital inflows and renewed optimism among investors.
In total, Bitcoin and Ethereum ETFs attracted over $3.6 billion in capital last week, highlighting the increasingly pivotal role of cryptocurrencies in traditional investment portfolios. With consistent inflows and asset prices hitting new peaks, institutional interest in cryptocurrencies shows no signs of waning.
