U.S. Spot Crypto ETFs See $515 Million Inflows Despite Price Drops

U.S.-listed spot crypto exchange-traded funds (ETFs) experienced significant net inflows on Wednesday, with both ether and bitcoin products attracting investor interest despite declines in the underlying asset prices. According to investment bank JPMorgan, this trend indicates sustained investor confidence in the crypto market.

U.S. spot ether ETFs recorded an estimated $84 million in net inflows on May 28, even as the price of ether fell by 1.3%. This inflow was driven by several key players in the market. BlackRock’s iShares Ethereum Trust (ETHA) led the way with $52 million in inflows, followed by Fidelity’s Ethereum Fund (FETH) with $26 million. Grayscale’s mini ETH Trust and Invesco/Galaxy’s QETH also contributed, adding $5 million and $2 million, respectively.

The notional trading volume for ether ETFs reached $459 million on that day, surpassing their post-launch daily average of approximately $375 million since their debut in July 2024. This elevated trading volume suggests a high level of market activity and investor engagement.

Spot bitcoin ETFs also saw substantial inflows, totaling an estimated $431 million. BlackRock’s iShares Bitcoin Trust (IBIT) was a major contributor, attracting $479 million in new investments. However, this strong inflow was partially offset by redemptions from ARK 21Shares Bitcoin ETF (ARKB), which saw $34 million in outflows, and Fidelity’s FBTC, which recorded $14 million in outflows.

Despite a 2.1% drop in bitcoin's price, the total trading volume for spot bitcoin ETFs remained high, reaching $3.5 billion. This figure is above the group’s historical average of $2.8 billion per day since their launch in January 2024, indicating robust market interest.

According to the analyst's forecast, investors are increasingly shifting their focus from gold to bitcoin ETFs. Over the last five weeks, U.S. bitcoin ETFs have seen $9 billion in inflows, while gold-backed funds have experienced $2.8 billion in outflows. This shift suggests that investors are viewing bitcoin as a more attractive asset compared to traditional safe-haven investments like gold.