A streak of several red days was broken for the bitcoin (BTC) and ether (ETH) ETFs.
Spot ETFs, because of how they work, impact the price of the underlying asset.
Bitcoin (BTC) and ether (ETH), Ethereum’s cryptocurrency, spot exchange-traded funds (ETFs) had a positive day yesterday, October 14, on Wall Street.
In this context, financial instruments based on bitcoin received a capital injection that amounted to 103 million dollars. Fidelity’s ETF FBTC led with $133 million, marking a turnaround after several days of negative flows.
The following chart, provided by SosoValue, shows what the flow of capital to and from BTC ETFs has been like:
Meanwhile, spot ether ETFs attracted $236 million in net inflows, also breaking a streak of several days in the red. This recovery in both markets signals an improvement in investor confidence towards BTC and ETH.
The performance of ETFs directly impacts the price of the underlying assets. The managers of these funds buy and hold bitcoin or ether to back their actions. When demand for these products increases, firms acquire more BTC or ETH in the market, which drives prices up due to the dynamics of supply and demand, as reported by CriptoNoticias.
Consequently, bitcoin price rose from $110,000 and is now trading at $112,000while ETH also had an increase from $3,894 to $4,200. This move suggests bullish momentum that could consolidate if positive flows persist.