SUMMARY

• Spot bitcoin ETFs in the U.S. saw $817.5 million in daily net inflows amid a crypto market rally on Tuesday.
• Bitcoin dropped 3.4% in the past 24 hours, trading at $86,855, possibly due to profit-taking by investors.

Spot bitcoin exchange-traded funds (ETFs) in the U.S. recorded noteworthy inflows on Tuesday, pulling in $817.5 million, following a massive $1.1 billion influx the previous day. The total trading volume for the 12 spot bitcoin ETFs came to $5.7 billion on Tuesday, compared to $7.3 billion on Monday and $2.8 billion on Friday, concurring with information from SoSoValue. Leading the inflows was BlackRock’s IBIT, which saw $778.3 million, bringing its total for the week to $1.93 billion. Fidelity’s FBTC contributed $37.2 million, whereas Grayscale’s Mini Bitcoin Trust and VanEck’s HODL ETF each logged over $10 million in inflows.

Despite these solid inflows, some bitcoin ETFs saw outflows. Grayscale’s GBTC, the second-largest spot bitcoin ETF by net resources, experienced $17.8 million in outflows, whereas Ark and 21Shares’ ARKB faced net surges of $5.4 million. The inflows into bitcoin ETFs occurred amid a broader cryptocurrency market rally, with bitcoin reaching new highs following President-elect Donald Trump’s triumph. In any case, bitcoin’s price dropped by 3.4% over the past 24 hours, falling to $86,855 after briefly breaking above $90,000 on Tuesday. This price plunge is seen as a conceivable sign of profit-taking by large investors. According to Valentin Fournier, an analyst at BRN, this pause in Bitcoin’s rally might be a brief correction before prices continue their upward trend. Fournier notes that upcoming events, including the Customer Price Index (CPI) release, may present market volatility.

Meanwhile, spot Ethereum ETFs moreover saw solid inflows, with $135.9 million in net inflows recorded on Tuesday, stamping the second-highest amount since their debut. BlackRock’s ETHA led with $131.5 million in inflows, whereas Bitwise’s ETHW included about $17 million, and Grayscale’s Mini Ethereum Trust saw $12.7 million in inflows. Be that as it may, Grayscale’s ETHE experienced $33.2 million in outflows. As a result, the aggregate total for the nine Ethereum ETFs turned positive for the first time since their dispatch, reaching $94.62 million, a noteworthy advancement from the negative $686 million on September 23. The trading volume for Ethereum ETFs fell to $582.2 million on Tuesday from $913 million the day before, in spite of the fact that Tuesday’s volume remained the second-largest since July 29.

Overall, the strong inflows into both Bitcoin and Ethereum ETFs emphasize the developing investor interest in these digital resources. However, the recent pause in the crypto rally recommends that investors exercise caution, anticipating further market signals and upcoming economic information that might affect the direction of prices.