Crypto News – Ahead of SEC Ethereum ETF Decision, Bitcoin Funds Gain $306 Million

As SEC Ethereum ETF Verdict Nears, Bitcoin Funds Attract $306 Million

Crypto News- Since Monday, the focus has been on the potential launch of spot Ethereum ETFs. However, the excitement has also benefited existing Bitcoin ETFs. Yesterday, Bitcoin ETFs saw a significant influx of $306 million, according to Coinglass. This marks the highest single-day inflow for these funds since earlier this month.

Excitement Over Ethereum ETFs Fuels Bitcoin ETF Inflows

The distribution of these inflows wasn’t even. BlackRock’s iShares Bitcoin Trust (IBIT) attracted a whopping $290 million, while the Fidelity Wise Origin Bitcoin Fund (FBTC) received $26 million. On the other hand, the Bitcoin Bitcoin ETF (BITB) and VanEck Bitcoin Trust (HODL) saw outflows of $4 million and $6 million, respectively.

BlackRock’s iShares Bitcoin Trust Dominates with $290 Million in New Inflows

Interestingly, the Grayscale Bitcoin Trust (GBTC), which recorded $72.5 million in net inflows from May 15 to May 20, remained flat on Tuesday, as per Coinglass data.

Notably, the gap between GBTC and IBIT has narrowed to $736 million, roughly half of what it was less than a month ago. It’s uncertain whether Grayscale’s new CEO, Peter Mintzberg, will implement any changes to their flagship Bitcoin fund.

But why would Bitcoin ETFs benefit from the anticipation surrounding Ethereum ETFs? One reason could be that analysts, such as those from Standard Chartered bank, believe that SEC approval of an Ethereum ETF could propel both BTC and ETH to new all-time highs. The global market cap neared this level in mid-March when Bitcoin reached its current all-time high of $73,737.94.

For Ethereum, achieving a new high means reaching $4,878.26, a price last seen on November 10, 2021, when the global crypto market capitalization briefly surpassed $3 trillion.

VanEck Ethereum ETF Nears Approval? DTCC Lists Fund on Active Roster

Moreover, traders are increasingly turning to derivatives, hoping for a similar surge. Ethereum’s open interest has soared by 30% to a record $11 billion in the past day, according to Kaiko. As of this morning, the Depository Trust and Clearing Corporation has listed the VanEck Ethereum ETF on its active and pre-launch list, though it’s uncertain if this signals imminent approval.

It’s worth noting that Bitcoin ETF tickers appeared and disappeared from the clearing house and settlement company’s list back in October, months before the SEC approved any for trading.

FAQ: Bitcoin and Ethereum ETFs

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