Unveiling the Force Behind $3.4B Crypto ETF Surge: HODLers or Hedge Funds?

Key Points

• Bitcoin ETFs have seen inflows of $591.2M, with BlackRock’s IBIT leading at $970.9 million.
• Hedge funds and HODLers are driving ETF demand in both Bitcoin and Ethereum markets.

The cryptocurrency market is experiencing a strong bullish rebound, recovering from the recent disruption caused by the Trump tariff shock. This momentum has also extended to crypto ETFs, with Bitcoin [BTC] ETFs collectively receiving $591.2 million in inflows.

Bitcoin ETF Analysis

BlackRock’s IBIT has emerged as the top performer, drawing in a remarkable $970.9 million. Other major ETFs like Fidelity’s FBTC and Grayscale’s GBTC experienced outflows of $86.9 million and $42.7 million, respectively.

Despite these outflows and being the most expensive option, Grayscale’s GBTC has outperformed all its competitors in revenue terms. GBTC reportedly earned an implied $268 million, surpassing the combined $211 million generated by the other 11 Bitcoin ETFs.

Ethereum ETF Update

While Bitcoin ETFs have been in the spotlight, spot Ethereum [ETH] ETFs are also making progress, recording $64.1 million in net inflows. BlackRock’s ETHA led with $67.5 million, while Bitwise’s ETHW was the only one to record outflows, losing $3.4 million.

The increase in ETF inflows for both Bitcoin and Ethereum seems to be driven by hedge funds capitalizing on arbitrage opportunities and HODLers demonstrating long-term conviction. Institutional players are actively investing in various crypto ETFs, providing liquidity and demonstrating a growing interest in digital assets within traditional finance.

Bitcoin was recently trading at $94,985.44 following a 0.5% increase in the last 24 hours, while Ethereum followed with a stronger 1.22% gain, reaching $1,830.28. However, technical indicators suggest a more complex picture. Bitcoin’s Relative Strength Index (RSI) hovered around the 51 mark, indicating that while bullish momentum is present, it is not yet dominant. Conversely, Ethereum’s RSI stood lower at 43, suggesting that bearish pressure continues to outweigh buying strength.