Recent data shows a sharp increase in demand for Bitcoin and Ethereum ETFs in the U.S. alongside rising cryptocurrency prices.
Impact of Major Organizations on the ETF Market
Major organizations like BlackRock and Fidelity have led the charge in attracting investments into Bitcoin ETFs. Specifically, the IBIT ETF received $448 million while Wise Origin pulled in $324 million. This surge in investor interest coincided with Bitcoin surpassing $118,000.
Historic Performance of Ethereum ETFs
Ethereum ETFs also recorded historic figures. BlackRock’s Ethereum Trust (ETHA) brought in $300.9 million, marking its best day ever. The total ETH ETF inflow became the second highest since launch.
Mismatch Between Demand and Supply in the Crypto Industry
Despite the inflow frenzy, many traditional advisors remain on the sidelines. For instance, major platforms like Vanguard still refuse to offer access to these crypto vehicles, even as demand surges. Given that new cryptocurrency issuance is low (only $6.33 million in new ETH entered circulation in the past 24 hours), demand from ETFs significantly outpaces supply.
The rising demand for Bitcoin and Ethereum ETFs amid price increases highlights growing institutional interest in the cryptocurrency market, despite existing access limitations to such products.
