Bitcoin and Ethereum ETFs See Record Inflows Amid Fed Rate Cut Hopes

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ETFs Linked to Bitcoin and Ethereum See Significant Inflows as Investors Prepare for Fed Rate Cuts and a Pro-Crypto President

A total inflow of 25,675 BTC ($1.74 billion) in seven days is the largest since July, indicating a growing interest in these digital assets. US-listed spot Bitcoin ETFs have received the most significant amount of $1.9 billion since October 14, which equals roughly 21,450 BTC, or 48 days of mined supply.

The surge in demand for Bitcoin is a clear indication of its potential as primarily value-storing asset and hedge against inflation. Meanwhile, Ethereum, the world’s second-largest cryptocurrency by market capitalization, has also experienced significant traffic. US-listed spot Ether ETFs received $48.4 million on October 17, with BlackRock’STATM ETHA and Fidelity FETH being the most recent to receive contributions.

The evidence suggests that investors are increasingly interested in diversifying their portfolios by gaining exposure to multiple cryptocurrencies. This trend is evident in the popularity of ETPs and ETFs, which offer a secure and efficient means of investing in digital assets without direct ownership. The greater accessibility has contributed to the growing acceptance of cryptocurrencies as an investment vehicle.

In particular, Bitcoin has experienced a decline of 15% since its October 10 lows, now just 8% shy of its all-time high of $26,099. A combination of factors, such as the increasing use of ETFs and e-trade platforms, and improving market sentiment, has contributed to this surge.

The net inflows of US-listed spot Bitcoin ETPs have reached over $20 billion since their launch, matching the comparable value of gold ETLs. The increase highlights the growing popularity of Bitcoin as a safe haven and potential hedge against inflation. This is partly due to expectations of Federal Reserve rate cuts, which could result in higher inflation rates and lower returns on traditional assets.

Hence, investors are turning to alternative value-sharing platforms like Bitcoin and Ethereum to diversify their portfolios and safeguard their funds. Furthermore, the potential for a pro-crypto president in the 2024 US presidential election has also increased optimism in that industry. A more accessible administration for cryptocurrency could result in more transparent regulations, greater investor confidence, and increased investment opportunities.

Ultimately, the substantial flows into Bitcoin and Ethereum ETPs and ETFs are evidence of the increasing mainstream adoption of cryptocurrencies as a viable investment option. As investors diversify their portfolios to safeguard against inflationary risks, these digital assets are increasingly being viewed as both storing value and buffering risk.

For more insights and information on the growing adoption of cryptocurrencies, read our article on CoinSeeks.com: Crypto Markets on the Rise as Investors Prepare for Fed Rate Cuts and a Pro-Crypto President.

The cryptocurrency market is expected to experience growth and adoption in the near future, thanks to a potential pro-crypto president and Fed rate cuts.