TL;DR
- US Bitcoin ETFs saw a net outflow of $54 million in a single day, led by Fidelity and Ark Invest.
- BlackRock’s IBIT bucked the trend, attracting $37 million in inflows during its 17th consecutive day without outflows.
- Bitcoin ETFs in Hong Kong saw no new inflows, reflecting global market uncertainty.
The cryptocurrency market continues to experience volatility amid geopolitical tensions, particularly the conflict between Iran and Israel.
This situation has significantly affected Bitcoin exchange-traded funds (ETFs) in the United States. On October 3, 2024, net outflows of $54 million were recorded, with Fidelity and Ark Invest leading the way. Fidelity’s FBTC and Ark Invest’s ARKB ETFs were the most affected, while other options such as Grayscale’s GBTC did not see any significant changes.
Despite this backdrop, BlackRock’s IBIT demonstrated remarkable resilience by attracting $37 million in new inflows, marking its 17th consecutive day without outflows. This positive performance positions IBIT as one of the most robust cryptocurrency investment products on the market, accumulating a total net inflow of $21.56 billion.
Moreover, in the first few days of October, BlackRock has maintained a standout performance, recording $40.8 million in inflows on the first day of the month alone. Even after a missile attack by Iran on Israel on October 1, IBIT continued to show its strength, despite most Bitcoin ETFs hitting their lowest level in two weeks.
Another fund that managed to capture investors’ attention was the Bitwise ETF (BITB) , which reported an inflow of nearly $3 million, its first positive inflow since the beginning of the month. Invesco Galaxy’s BTCO also captured $2.65 million in flows. However, six of the eleven Bitcoin ETFs in the United States, including VanEck HODL and Franklin Templeton’s Digital EZBC, saw no movement amid the uncertainty generated by global conflicts.
Global Impact on Bitcoin ETFs
Beyond the United States, the global Bitcoin ETF market has also felt the effects of the Middle East crisis. In Hong Kong, all approved Bitcoin ETFs reported zero inflows on the same day, reflecting a cautious stance among international investors.
Additionally, the ChinaAMC Bitcoin ETF experienced a drop of 0.83%, accompanied by two more funds that also recorded losses of between 0.49% and 0.60%.
As for Ethereum ETFs , the situation has been similar. In the United States, these products suffered outflows of approximately $3.20 million, while in Hong Kong no new inflows were recorded. Only BlackRock’s iShares Ethereum Trust (ETHA) achieved a positive inflow of over $12 million, marking an exception in a mostly negative context.
On the other hand, Grayscale and Fidelity reported losses of $15 million and $587,000, respectively, evidencing continued volatility in the cryptocurrency market.
The current geopolitical crisis and its impact on financial markets, particularly the cryptocurrency sector, remains a key factor to watch in the coming days.
