Live Markets: Bitcoin trumps ether in ETF flows
27/08/2024 18:58
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S&P 500, Nasdaq modestly higher; Dow ~unchanged
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Tech up most among S&P sectors; Energy biggest laggard
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Dollar off; gold inches up; crude, bitcoin both down >2%
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10-Year U.S. Treasury yield edges up to ~3.83%
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BITCOIN TRUMPS ETHER IN ETF FLOWS
Digital asset investment products saw inflows totaling $533 million last week, marking the
largest inflows in five weeks after remarks from U.S. Federal Reserve Chair Jerome Powell
cemented bets of an interest rate cut in September, according to a CoinShares report.
ETFs linked to spot bitcoin attracted $543 million of inflows, particularly on Friday after
Powell's dovish comments, while outflows in funds tied to ether logged $36 million in outflows
in the week ended Aug. 24.
The spot bitcoin ETFs launch in January after years of regulatory pushback was a major
victory for the digital asset industry.
BlackRock's ishares Bitcoin Trust IBIT.O recorded nearly $21 billion sales since its
launch, making it one of the most successful ETF launches of the year and the fourth largest
asset gatherer in 2024 among all ETFs, J.P.Morgan said in a note on Monday.
This paved the way for the launch of spot ether ETFs about six months later but the demand
was tepid in comparison.
Comparing the first 25 trading days of bitcoin and ether spot ETFs, bitcoin sawn 19 days of
net inflows and six days of outflows, while ETH has experienced eight days of net inflows and 17
days of outflows.
"This stark difference in demand, favouring BTC over ETH among traditional finance
investors, is not surprising and should not be seen as a negative outcome," said Matteo Greco,
analyst at digital asset investment company Fineqia International FNQ.CD .
"The conversation around including altcoins in ETFs in the U.S. only started less than a
year ago, after BTC spot ETFs started trading ... whereas BTC spot ETFs had been under
discussion for years before gaining the green light."
"As a result, BTC spot ETFs have an established investor base that was built up over several
years, while issuers are still working to attract new investors and demand for ETH, and
potentially other altcoins, aiming to boost digital asset adoption in the coming months and
years."
Bitcoin and ether are the two biggest digital assets, commanding about 55% and 15% of the
total cryptocurrency market value, according to data site CoinMarketCap.com.
(Medha Singh)
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Weekly bitcoin and ether ETF flows https://tmsnrt.rs/3YVTdMZ
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