Good news from Bitcoin ETFs

Finally, the daily capital inflows into Bitcoin ETFs have returned.

In the last two weeks, there wasn’t particularly good news from this perspective, but yesterday the trend seems to have changed.

Outflows

Starting from Friday, October 10, there have been several stock market sessions closed with overall net outflows on ETFs on Bitcoin.

In fact, until last Wednesday there were only two daily sessions closed with inflows, while all the other seven closed with overall net outflows.

The worst day was Thursday, October 16, when the price of Bitcoin broke below the $110,000 support level that had held for several days.

In total, over nine sessions, the total outflows approached 900 million dollars, which, however, pale in comparison to the 62 billion dollars of total net inflows since they were listed on the stock exchange.

Furthermore, the all-time historical record for daily outflows exceeds 1.1 billion dollars, so even by adding up all nine sessions from October 10 to 22, a similar figure is not achieved.

Therefore, although the negative trend has been decidedly evident, it cannot be considered worrisome.

Inflow Returns on Spot Bitcoin ETFs

Such trend seemed to have ended already last Thursday, but with only 20 million dollars of daily inflows much more confirmation was needed to consider it concluded.

Last Friday, the afflussi were 90 million dollars, therefore an initial possible confirmation seemed to have already arrived.

However, yesterday with almost 150 million dollars of inflows the definitive confirmation arrived.

Practically in the last three trading sessions with 260 million dollars in total net inflows, almost a third of the outflows from the previous nine sessions have already been recovered.

To this must be added that in the previous weeks, and in particular from September 29 to October 9, there were recorded strong inflows, well above those of recent days, with a peak even of 1.2 billion dollars on October 6, the day of the new all-time high for the price of Bitcoin.

The all-time daily peak of inflows is 1.3 billion, thus not much above the local peak on October 6th.

Therefore, last Friday only marked the end of a local phase primarily characterized by the end of the excess euphoria that had defined the previous weeks, and which in theory could also be followed sooner or later by a new period of euphoria.

Ethereum

For Ethereum, however, the situation is slightly different.

First of all, it did not record new all-time highs at the beginning of October, because those from August are still holding.

Furthermore, perhaps the difficult period ended just yesterday, but confirmations are still needed to say it with certainty.

Practically after the peak in August for Ethereum ETFs, a prolonged period of consolidation began, still ongoing, which has seen alternating days of inflows and days of outflows.

The last two days of significant inflows were recorded on September 29 (550 million dollars) and October 7 (450 million), while the last day of significant outflows was on October 13 (-430 million).

In this case, a true medium-term trend cannot be identified, but only short-term trends that have alternated over the past two months.

It should also be noted that yesterday’s inflows, amounting to approximately 94 million dollars, are still decidedly too few to assert that the period of sideways movement has ended, especially since the previous three sessions all closed in negative, with a peak of -127 million last Thursday.

The situation is therefore different compared to that of ETF su Bitcoin.

Traditional Stock Exchanges

However, there is also another piece of good news regarding Bitcoin.

In fact, the BTC on crypto exchange are continuing to decrease, so much so that today the new all-time low of the current cycle was recorded.

It is very likely that the overall inflows into Bitcoin ETFs are fueling BTC purchases by fund managers even on the exchanges.

While fund managers do not actually purchase BTC directly from exchanges, the OTC services they use can also source from exchanges if necessary.

Therefore, it might not be a coincidence that the overall inflows into Bitcoin ETFs at the beginning of October, as well as those in September, occurred during the same period when the BTC reserves on crypto exchanges further declined to reach new all-time lows.