The crypto market is starting to move again and we also notice this in the American crypto spot exchange-traded funds (ETFs). After days of restraint, we see the inflows increasing again. And that gives investors hope for a return of positive market sentiment.
Inflows into Bitcoin and Ethereum ETFs are increasing
The American Bitcoin (BTC) and Ethereum (ETH) funds have again recorded net inflows in recent days. Bitcoin saw an inflow of $202.4 million yesterday, according to data from Farside. This marked the fourth consecutive day of positive inflow. Over that period, a total of $462.6 million flowed into the Bitcoin ETFs.
It is notable that the joint fund of ARK Invest and 21Shares was the most popular over the past two days, with a combined inflow of $152.2 million. BlackRock followed with an inflow of $124.9 million over the same period.
Ethereum funds even recorded higher inflows than Bitcoin on Tuesday, with $246 million. Monday was also a positive day, with an inflow of $133.9 million. The upward series is shorter for the time being: Ethereum has now had two consecutive days of inflows.
In recent months, Bitcoin and Ethereum ETFs have been joined by the first funds for Solana (SOL), Dogecoin (DOGE) and Ripple (XRP), but many others are now joining them. Yesterday, Bitwise launched a Solana fund and Canary Capital launched a fund for both Hedera (HBAR) and Litecoin (LTC). In this article you can read how the newcomers performed on their debut. Today, Grayscale is also launching a Solana fund.
Why is money flowing into crypto again?
The recent inflows are largely due to two bullish factors. Firstly, there is the interest rate decision of the American central bank, the Federal Reserve (Fed), which is scheduled for today. Investors are counting on a rate cut, which is usually good for risky assets like crypto.
What makes it extra special is that the Fed has to make the decision while it has not received economic data for weeks. Due to the temporary US government shutdown, important reports such as employment figures are unavailable. However, the central bank was presented with better-than-expected inflation data last week, which may provide room for policy easing.
Investors are also looking at the planned meeting between American President Donald Trump and his Chinese counterpart Xi Jinping tomorrow. On the sidelines of the APEC summit in South Korea, the two world leaders will speak for the first time since Trump’s return to the White House. The hope is that they can put an end to the escalating trade war between the United States and China.
Both countries appear to be seeking some rapprochement. China has temporarily suspended some export restrictions on rare earth metals, and the US is said to forgo new tariffs in return.
Source: https://newsbit.nl/bitcoin-en-ethereum-etfs-halen-fortuin-binnen-ondanks-gespannen-markt/
