Key Insights
- U.S. Bitcoin ETFs attracted $477M in inflows, reversing earlier outflows and signaling renewed institutional interest amid market stabilization.
- Trading volumes surged to $7.41B, reflecting growing institutional participation and stronger liquidity across major crypto investment products.
- Gold’s sharp decline of 5.9% prompted investors to shift focus toward Bitcoin ETFs as alternative risk-adjusted assets.
U.S. spot Bitcoin exchange-traded funds (ETFs) turned positive on Tuesday with total net inflows of $477.19 million. The renewed momentum reflected improved sentiment among institutional investors following several days of volatility across crypto markets.
Data from SoSoValue showed that nine of the twelve Bitcoin funds registered inflows. BlackRock’s iShares Bitcoin Trust (IBIT) led with $210.90 million in new investments. Ark Invest and 21Shares’ ARKB followed with $162.85 million, while Fidelity’s FBTC added $34.15 million. Smaller inflows were recorded across funds managed by Bitwise, VanEck, Grayscale, Invesco, Franklin, and Valkyrie, bringing total assets under management to $151.58 billion.
Rising Trading Volumes Boost Optimism
Trading activity across Bitcoin ETFs surged to $7.41 billion on Tuesday, maintaining the high-volume trend seen throughout October. Monthly volumes have consistently ranged between $5 billion and $9.78 billion, significantly higher than last month’s $2 billion to $4 billion. According to Nick Ruck, director at LVRG Research, the consistent growth in volume signals stronger institutional engagement and deeper market liquidity.
Spot Ethereum ETFs also reported net inflows totaling $141.66 million. Fidelity’s FETH attracted $59.07 million, while BlackRock’s ETHA and Grayscale’s ETHE brought in $42.46 million and $13.14 million, respectively. VanEck’s ETHV added $4.40 million. Cumulative trading volume for Ethereum funds reached $3.17 billion, pushing total net assets to $27.17 billion, equal to 5.69% of Ethereum’s market capitalization.
Gold Weakness Shifts Focus Toward Crypto
Spot gold prices fell sharply by 5.9% on Tuesday, marking their largest single-day decline since 2020. Analysts noted that the downturn in gold may be encouraging investors to reallocate toward digital assets for better risk-adjusted returns. Ruck added that the peak in gold demand could open opportunities for Bitcoin to gain from a “catch-up trade” as investors diversify portfolios.
Bitcoin traded at $108,209.29, up 0.18% in the past 24 hours, with trading volume rising 66% to $102.64 billion. Ethereum slipped slightly by 0.19%. Despite ongoing global economic uncertainties, rising inflows and higher trading volumes suggest a gradual recovery in institutional confidence toward crypto-linked assets.
