Significant Inflows into Bitcoin and Ethereum ETFs Mark a Rebound in the Market

On September 18, spot Bitcoin ETFs experienced a remarkable inflow of $433 million, while spot Ethereum ETFs saw an increase of $144 million. These figures highlight a significant rebound following a period of mixed and negative flow sessions.

Fidelity’s FBTC was the standout performer in the Bitcoin category, attracting $311 million of the total inflows, while BlackRock’s IBIT contributed $108 million. In contrast, BlackRock’s ETHA led Ethereum inflows with $114 million, and Fidelity’s FETH added approximately $26 million.

Market Dynamics and Growth

The substantial inflows have brought the total assets under management (AUM) for Bitcoin ETFs to $102.532 billion, which now represents 6.29% of Bitcoin’s market capitalization. Cumulative historical net inflows into Bitcoin ETFs have reached $55.161 billion since their inception. Meanwhile, Ethereum ETFs, although smaller, are gaining traction with total AUM at $16.719 billion, accounting for 5.2% of Ethereum’s market cap and cumulative inflows of $13.250 billion.

Comparative Performance of Fidelity and BlackRock

The inflow dynamics varied significantly between Bitcoin and Ethereum. Fidelity dominated Bitcoin inflows, capturing approximately 72% of the day’s total, while BlackRock took the lead in Ethereum inflows with 79% of the total for that day.

Implications for the Market

The penetration of Bitcoin ETFs into the market cap creates structural dynamics that effectively reduce the circulating supply of Bitcoin as inflows are stored under institutional custody. With cumulative inflows exceeding $68 billion across both Bitcoin and Ethereum ETFs, the market is witnessing a notable shift in institutional investment behavior.

New Developments in Bitcoin ETF Market

• BlackRock clients purchased $108.44 million worth of Bitcoin in a single session through the iShares Bitcoin Trust (IBIT).
• IBIT has become the dominant force in the US spot Bitcoin ETF market since its launch in January 2024, capturing 50% to 80% of total daily or weekly inflows.
• IBIT's holdings have reached between 770,000 and 786,000 BTC, making BlackRock one of the largest institutional holders of Bitcoin.
• Multi-day buying streaks have led to cumulative weekly inflows surpassing $680 million during certain weeks, indicating sustained institutional demand.
• In 2026, BlackRock reduced the minimum threshold for in-kind conversions from $25 million to $1 million, allowing more investors to swap Bitcoin for IBIT shares.
• Cumulative in-kind conversions have exceeded $5 billion as investors transition from direct Bitcoin holdings to the regulated ETF structure.

New Developments in Bitcoin ETF Market

• Fidelity’s Wise Origin Bitcoin Fund (FBTC) experienced a remarkable inflow of $310.72 million on September 18, 2023, accounting for approximately 72% of total net inflows across US spot Bitcoin ETFs.
• On the same day, total net inflows into all US spot Bitcoin ETFs reached $433 million, with Fidelity and BlackRock’s IBIT together representing about 97% of this capital influx.
• FBTC has accumulated approximately $10.36 billion in net inflows since its launch in January 2024, making it one of the top funds in the spot Bitcoin ETF market.
• The total assets under management for US spot Bitcoin ETFs hit $102.53 billion as of September 18, 2023, representing 6.29% of Bitcoin’s entire market capitalization.
• With significant inflows, the ETF complex is now seen as a structural pillar in Bitcoin's market, with every 16th dollar of Bitcoin's total valuation held by a US-listed ETF.

Latest Market Insights (as of September 18, 2023)

• Zcash (ZEC) spot ETFs attracted $98.2 million, marking the highest inflow among 14 crypto products.
• Ethereum (ETH) funds experienced an outflow of $140 million during the same week.
• Bitcoin ETFs saw a significant inflow of $160.04 million on Monday, but lost $450.33 million on Tuesday after the Senate rejected the Digital Asset Market CLARITY Act.
• The Federal Reserve raised interest rates by 25 basis points on Wednesday, leading to further losses for Bitcoin and Ethereum of $295.98 million and $224.11 million, respectively.
• Bitcoin rebounded on Friday, pulling in $433.03 million, recovering the losses from earlier in the week, but ended with a total of only $6.2 million for the week, the smallest in 141 weeks.
• Ethereum's outflows totaled $404.82 million over three days before a $143.80 million inflow on Friday, leaving it short for the week.
• The Zcash ETF has recorded four consecutive weeks of positive inflows since its launch in late August, accumulating a total of $271 million and reaching $914.5 million in assets.
• Trading volume for Zcash reached $11.42 billion, representing 32.5% of all spot crypto ETF turnover.
• Solana (SOL) continued its positive streak with an additional $13.2 million, marking 12 weeks of inflows.
• Net flows across all 14 products totaled negative $5 million, despite a 4.89% rise in combined assets to $123.9 billion.