Key Highlights:
- Bitcoin and Ethereum ETFs recorded an inflow of $1.29 billion on Tuesday, October 7.
- BlackRock’s IBIT and ETHA funds took the lead as Grayscale suffered with outflows.
- The continuous influx hints at strong institutional interest.
Spot Bitcoin and Ethereum ETFs in the U.S. had a strong streak, receiving a total of $1.29 billion in net inflows on October 7, as per Farside Investors data. The inflows recorded the seventh consecutive day of positive momentum on both digital asset categories, indicating that investors have long-term confidence as the crypto market surges with renewed optimism.
Bitcoin & Ethereum ETFs Shine With Massive Inflows
The larger part of the inflows on the day went to Bitcoin ETFs, introducing about $875.6 million. The iShares Bitcoin Trust (IBIT), issued by BlackRock, was the first to achieve a net inflow of $899.4 million, which prolongs its dominance in spot Bitcoin ETF issuers.
There were mixed flows in other issuers, but with smaller increases and decreases, balancing to have a high aggregate total. Although Grayscale registered slight redemptions in GBTC with $28.6 million outflows, collectively, Bitcoin ETFs achieved their longest streak since the start of September.
Ether ETFs also continued to record a phenomenal performance as they gained a net inflow of $420.9 million on the same day. The iShares Ethereum Trust (ETHA) of BlackRock was again a leader in the category, picking up $437.5 million. However, Fidelity’s FETH ended its six-day inflow streak with an outflow of $25.7 million, according to Farside UK.
The ongoing upward positive flow trend highlights the increasing investor demand for Ethereum-based investment vehicles, less than three months after the start of trading on spot Ether ETFs. The previous week’s data indicate that both Bitcoin and Ethereum products are on a consistent upward trend. Spot Bitcoin ETFs have taken in billions of inflows since late September as they reversed other outflows seen in the middle of the month.
BTC, ETH Funds Mark Revival
The recovery started on September 30 when Bitcoin ETFs experienced net inflows of $429.9 million, and $675.8 million and $627.2 million on October 1 and 2, respectively. That continued into October 3 with $985.1 million and October 6 with $1.2 billion, one of the best cumulative inflow runs since its debut in January.
The same pattern was followed by Ethereum ETFs as they recovered after significant redemptions at the end of September to show huge inflows at the beginning of October. Ethereum ETFs had little to no inflows on September 30 and October 1, but saw huge inflows of $307.1 million on October 2, $233.5 million on October 3 and $181.8 million on October 6, and reached the peak of $420.9 million inflows on October 7.
This flow of inflows in both asset classes is in the environment of growing institutional interest and a new sense of confidence in the crypto market in general. Analysts point to the growing popularity of spot crypto ETFs as a growth factor due to the growing demand for wealth management platforms and registered investment advisers who are slowly incorporating spot crypto ETFs into diversified portfolios.
The winners of the current inflows wave remain BlackRock, Fidelity, and Bitwise. The IBIT of BlackRock has continued to lead in the Bitcoin ETF category in daily and cumulative flows, and Fidelity FBTC has continued to receive consistent institutional allocations. BlackRock has released its ETHA, and Fidelity its FETH, as the first movers in the Ethereum market, capturing most of the total Ether ETF trading since inception.
The price volatility of cryptocurrencies has remained, although ETF inflows suggest that mainstream acceptable exposure with regulated exposures is increasing. According to the recent statistics, capital investment in Bitcoin and Ethereum ETFs is resistant to macroeconomic uncertainty and the fluctuations of prices in the short term.
Cumulative data by Farside reveals that U.S. listed spot Bitcoin ETFs have since their approval earlier this year attracted over $64.5 billion in net inflows and Ethereum ETFs, which started trading only later, have already attracted several billion in a few weeks. As the two asset classes experience steady inflows, the trend reflects a wider institutional change toward the digital asset investment products being incorporated in traditional financial markets.
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