TLDR
- Spot bitcoin ETFs saw $477.2 million in net inflows on Tuesday.
- Gold prices dropped 5.9%, marking the sharpest decline since 2020.
- Ethereum ETFs added $141.6 million led by Fidelity and BlackRock.
- Bitcoin ETF trading volume reached $7.41 billion, showing strong demand.
Spot bitcoin exchange-traded funds (ETFs) in the United States saw strong inflows on Tuesday as investors turned to digital assets amid weakening demand for gold. The funds recorded a combined net inflow of $477.2 million, reflecting renewed confidence among institutional investors following several days of outflows linked to broader market volatility and geopolitical concerns.
Bitcoin ETFs Record Strong Inflows After Recent Outflows
According to data from SoSoValue, nine of the twelve U.S.-listed spot bitcoin ETFs recorded inflows on Tuesday. BlackRock’s iShares Bitcoin Trust (IBIT) led with $210.9 million, followed by Ark Invest and 21Shares’ ARKB with $162.8 million. Fidelity’s Wise Origin Bitcoin Fund (FBTC) added $34.15 million in new capital.
The combined inflows marked a turnaround after over $1 billion in outflows earlier in the week. Persistent trade tensions between the United States and China had contributed to the previous decline in investor sentiment. Tuesday’s rebound suggested that institutions were regaining confidence in digital assets amid ongoing economic uncertainty.
LVRG Research Director Nick Ruck said, “Yesterday’s return to net positive flows signals a potential stabilization in institutional sentiment after recent volatility.” He added that this shift indicates “renewed confidence in crypto as a portfolio diversifier amid economic uncertainties.”
Ethereum ETFs Also Record Notable Gains
Spot Ethereum ETFs followed a similar trend, recording $141.6 million in net inflows on the same day. Fidelity’s FETH attracted $59 million, while funds from BlackRock, Grayscale, and VanEck also reported new investor capital.
These inflows came after several sessions of mixed performance across digital asset funds. The recent uptick in Ethereum ETF demand aligns with a broader recovery in market activity, as investors diversify across major cryptocurrencies rather than focusing solely on bitcoin.
The renewed buying interest also coincides with growing optimism around institutional adoption of Ethereum-based investment vehicles, which have gradually expanded since regulatory approval for spot ETFs earlier this year.
Trading Volumes Reflect Rising Institutional Participation
Spot bitcoin ETFs reported a total trading volume of $7.41 billion on Tuesday, maintaining the elevated activity seen throughout October. Trading volumes for bitcoin ETFs have ranged between $5 billion and $9.78 billion this month, compared to an average of $2 billion to $4 billion in September.
Ruck noted that the rising trading volumes signal increasing institutional engagement. “The surge in monthly trading volumes marks an uptick in institutional engagement, which delivers deeper liquidity and risk appetite,” he said. He added that traditional investors are now allocating more capital to digital assets for both yield and hedging opportunities.
This trend indicates growing participation from large-scale investors seeking diversification as macroeconomic pressures and tightening financial conditions affect traditional asset classes.
Softening Gold Demand Shifts Focus to Crypto Assets
The move toward bitcoin and other digital assets coincides with a downturn in gold demand. Spot gold prices fell 5.9% on Tuesday, marking the sharpest intraday drop since 2020. Analysts suggest that investors are reallocating funds from gold to cryptocurrencies as they seek new risk-adjusted opportunities in a changing market environment.
Ruck stated that gold demand “has peaked,” predicting a continued shift toward crypto-based instruments. Some analysts believe this transition could trigger an “aggressive catch-up trade” for bitcoin as it gains traction as an alternative store of value.
According to The Block’s market data, bitcoin traded slightly higher at $108,450 in the past 24 hours, up 0.18%. Ethereum remained steady at $3,869, reflecting limited short-term price movement despite strong ETF inflows.
The latest ETF data suggests that institutional investors are once again positioning digital assets as viable alternatives to traditional safe-haven investments amid changing global market conditions.
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