Bitcoin: ETFs attract billions, investors get excited
People are still crazy about Bitcoin and Ethereum ETFs. Massive amounts of money are flowing into these financial goods that are backed by the main cryptos. This shows that institutional investors are becoming more interested in this alternative asset class.
Since they first came out, Bitcoin ETFs have been a huge hit. On September 24, these publicly traded funds saw net inflows of $136 million in a single day. This is a huge number that shows how investors are becoming more interested in this type of product.
Big names in asset management, like BlackRock, Bitwise, and Fidelity, are raising $17 million each to lead the market. This result is part of a bigger trend of Bitcoin being used by businesses.
At least $55 billion was put into Bitcoin ETFs in 2024, which is a huge amount of money that shows how much people trust the first cryptocurrency.
Part of the reason for the rush to buy Bitcoin ETFs is that the base asset has done so well. Bitcoin saw an amazing 124% rise in value in 2023, outperforming most standard asset classes. Its part of the crypto market has also grown, now making up 56% of the total capitalisation.
Even though Bitcoin is still the leader, Ethereum is close behind. The value of the second-largest cryptocurrency by market capitalisation is also going up, and on September 24, $62.5 million was added to ETFs that are backed by it.
People are interested in Ethereum because it has some unique features, like a smart contract platform that makes it possible for many decentralised apps to work.
Investors see Ethereum as a valuable product that goes well with Bitcoin because it has a lot of growth potential and can be used in more ways.
In a strange way, the recent instability in the crypto market, which was caused by people thinking that the US Federal Reserve would cut interest rates, has made ETFs more appealing. These financial goods let you invest in the crypto market while lowering some of the risks that come with holding crypto directly.
In short, the huge amount of money that is pouring into Bitcoin and Ethereum ETFs is a new step in the development of the crypto market. Strong institutional demand is driving this trend, which points to a bright future for the whole business.