Bitcoin Exchange-Traded Funds (ETFs) in the United States have been on a winning streak, with an increase of $88 million recorded on August 20. This figure represents a two-week high. Only two negative trading days have been observed in the past fortnight, notably on August 9 and August 14.
BlackRock’s iShares Bitcoin Trust saw a significant rise, adding $55.4 million to its stock portfolio. Since its commencement in January, the total inflows for this product have reached an outstanding $20.5 billion. Since May 1, no outflows have been recorded in the Trust.
The Ark 21Shares Bitcoin ETF also contributed greatly to the performance of Bitcoin ETFs with an inflow of $51.9 million on August 20. Other contributors included WisdomTree’s Bitcoin ETF and the Galaxy Bitcoin ETF.
Bitcoin ETFs rally as Ethereum declines
However, potential investors must be cautious of the volatility and risks associated with investing in Bitcoin ETFs.
Contrary to this trend, Grayscale Bitcoin Trust and Bitwise Bitcoin ETF suffered net outflows, with losses of $12.8 million and $6.5 million respectively. These figures spotlight the varying investment preferences within the cryptocurrency sector.
60% of the most significant hedge funds in America now include Bitcoin ETFs in their portfolios. Ethereum ETFs, on the other hand, have experienced more outflows than inflows in recent trading days. On August 20, Ethereum-based ETFs had their fourth consecutive day of outflows, with a net outflow of $6.5 million.
While outflows were observed in Ethereum-based ETFs overall, some funds did report inflows. For instance, BlackRock’s iShares Ethereum Trust reported net inflows of $26.8 million. Nonetheless, this influx was outshone by the $37 million net outflow from Grayscale’s Ethereum Trust. Other Ethereum-focused funds faced a similar situation: despite inflows, they were outweighed by outflows, highlighting the preferential trend towards Bitcoin investments over Ethereum.
