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The US ETFs on Ethereum and Bitcoin record extraordinary inflows, with a daily record of 428.5 million dollars for ether. Investor interest grows in parallel with the recovery of the crypto markets.
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Ethereum ETFs reach new records, Bitcoin does not lag behind
Investments in cryptocurrencies are experiencing a moment of renewed attention, with exchange-traded funds (ETF) on ether (ETH) and bitcoin (BTC) recording unprecedented inflows.
This growth reflects both the recovery of the markets and the interest of investors in more regulated and accessible financial instruments.
Last Thursday, the US spot ETFs on ether set an all-time record of inflows, with as much as 428.5 million dollars pouring into these instruments.
Dominating the scene was BlackRock’s ETHA ETF, which alone attracted 292.7 million dollars, a result that represents the all-time high for this fund.
Overall, in the last five days, the ETFs on ether have accumulated about 800 million dollars in new net investments, according to the data provided by Farside Investors.
These extraordinary results come at a time when ether has gained about 60% of its value in just one month, bringing the price of the second criptovaluta by market capitalization to about 3,900 dollars.
In any case, the ETHA by BlackRock is not the only protagonist of this rally. The BlackRock iShares Bitcoin Trust (IBIT) is setting new standards for bitcoin ETFs. With 770.5 million dollars in net inflows over five days, the IBIT continues to break records.
It recently surpassed 50 billion dollars in assets under management and, according to Bloomberg analyst Eric Balchunas, it has attracted more money this year than all but two of the over 2,800 ETFs launched in the last decade.
This milestone is not only impressive, but indicates a growing confidence of institutional investors towards bitcoin ETFs.
Since their introduction, these instruments have made it easier to access bitcoin for those who prefer to avoid the complexity of direct cryptocurrency trading.
A growth despite regulatory challenges
Despite the record numbers, the success of ETFs on ether and bitcoin is not without obstacles.
Nate Geraci, president of the consulting firm ETF Store, highlights that the ETFs on ether have attracted over 1.3 billion dollars in net inflows since July, despite the current limitations.
Among these, the absence of staking functionality, options trading, and in-kind creation/redemption mechanisms. Additionally, access to these funds is still limited for many large financial institutions like Vanguard.
Despite these challenges, the ETFs on ether and bitcoin are demonstrating an extraordinary ability to attract capital.
This could indicate a greater confidence in the potential long-term of cryptocurrencies, especially in a context of market recovery.
Furthermore, the recovery of the cryptocurrency market has played a key role in the increase of inflows. Ether and bitcoin have shown renewed strength, attracting investors eager to capitalize on the recent bull.
In particular, the 60% increase in ether in just one month has made the asset particularly attractive, not only for individual investors but also for institutional funds.
This trend reflects a wider acceptance of cryptocurrencies as an integral part of the global financial landscape.
Spot ETFs, which offer direct exposure to the underlying assets, represent a crucial tool for further expanding this adoption.
The future of crypto ETFs
Looking to the future, the success of ETFs on ether and bitcoin could push other market players to launch new products.
The appeal of these instruments lies in their ability to combine the volatility and growth potential of cryptocurrencies with the security and regulation of traditional ETFs.
However, the sector must face significant challenges, including increased regulation and the need to educate investors about the risks associated with these instruments.
If these challenges are successfully addressed, cryptocurrency ETFs could establish themselves as one of the main investment options in the global financial landscape.
In summary, the record inflows recorded by the ETFs on ether and bitcoin indicate a growing maturity of the market and a renewed confidence from investors.
With BlackRock and other major players leading the sector, the future of cryptocurrency ETFs looks more promising than ever.
English (US) ·