Once Donald Trump secured his position as the 47th President of the United States, the cryptocurrency market witnessed a substantial upsurge. Bitcoin [BTC] managed to exceed its previous record highs, leading other altcoins on a similar trajectory.
This bullish trend attracted a wave of investments in both spot Bitcoin and Ethereum [ETH] exchange-traded funds (ETFs), indicating a growing sense of confidence among investors.
Update on Ethereum and Bitcoin ETFs
Between November 5th and 13th, Ethereum ETFs observed significant inflows amounting to $796.2 million, while Bitcoin ETFs received even more substantial inflows of $4.73 billion from November 6th to 13th, portraying an increasing interest in digital assets.
However, data from Farside Investors on November 14th disclosed that Bitcoin ETFs encountered net outflows of $400.7 million across eleven funds. This coincided with a 2% decrease in Bitcoin’s value, settling at $89,164.
Similarly, Ethereum ETFs saw outflows totaling $3.2 million, paralleling a 2.89% drop in Ethereum’s price to $3,099 at the time of reporting.
The decline in the prices of both Bitcoin and Ethereum mirrored the assets flowing out of ETF investments, indicating a momentary shift in market sentiment.
Among Bitcoin ETFs, only BlackRock’s IBIT and VanEck’s HODL saw positive inflows, accumulating $126.5 million and $2.5 million, respectively.
Conversely, other Bitcoin ETFs like Fidelity’s FBTC and Ark’s 21Shares ARKB experienced considerable outflows of $179.2 million and $161.7 million, respectively. Various other funds noted nominal or zero movements.
Regarding Ethereum ETFs, BlackRock’s ETHA encountered inflows of $18.9 million, while Invesco’s QETH received modest inflows of $0.9 million.
However, most Ethereum ETFs registered no significant activity, with Grayscale’s ETHE witnessing the most substantial outflows amounting to $21.9 million.
Positive Outlook on ETFs
Despite the recent setback, the cryptocurrency community maintains an optimistic stance, with no adverse feedback regarding Bitcoin or Ethereum ETFs.
Conversations have sparked around the potential for Bitcoin ETFs to surpass the holdings of Satoshi Nakamoto, Bitcoin’s creator.
Analysts Shaun Edmondson and Bloomberg’s Eric Balchunas noted that U.S. spot Bitcoin ETFs have accumulated approximately 1.04 million BTC, nearing Satoshi’s estimated holdings of 1.1 million BTC.
Furthermore, Ryan Sean Adams, the co-founder of Bankless, anticipates a shift in Ethereum ETFs’ fortune as inflows are predicted to turn positive.
Adams envisions this transition as a significant catalyst that could drive Ethereum’s value skyward, potentially reaching $10,000.
He eloquently stated that an ETH ETF could be a
“Recipe for an ETH rocket to $10k.”