Bitcoin and Ethereum ETFs see $23 billion growth, but only $2.6 billion is new money

ETF growth driven mostly by price rises, not new investments

Bitcoin and Ethereum exchange-traded funds (ETFs)—investment funds that track the price of cryptocurrencies and trade on traditional stock exchanges—grew by $23 billion in total value last week. However, only $2.6 billion of this growth came from new money invested by people buying shares in these funds.

The remaining $20.4 billion came from the rising prices of Bitcoin and Ethereum, the two largest cryptocurrencies. This means most of the growth in the ETFs' total value was due to the assets they hold becoming more valuable, not because more investors were buying in.

Key numbers from last week

• Total growth in Bitcoin and Ethereum ETFs: $23 billion
• New money invested: $2.6 billion
• Growth from price increases: $20.4 billion

What this means for ETF investors

The data shows that while the total value of these ETFs is rising, the amount of new cash flowing into them is much smaller. This could indicate that investors are not rushing to buy more shares, but are instead benefiting from the price appreciation of the cryptocurrencies the ETFs hold.

ETFs allow people to invest in Bitcoin or Ethereum without directly buying the cryptocurrencies themselves. They are popular because they can be bought and sold like stocks through regular brokerage accounts.

Sources

• Decrypt