Bitcoin was rising Thursday but other cryptocurrencies traded mixed. While inflows into exchange-traded funds tied to spot trading of Bitcoin haven’t done much to boost the digital token’s price, strong trading volumes are reason for some optimism.
Bitcoin
has risen 0.3% to $42,771 over the last 24 hours. The largest cryptocurrency largely has settled back into its trading range of $42,000 to $44,000 established before the Securities and Exchange Commission approved the first spot Bitcoin ETFs last week, which briefly sent it above $49,000.
The scale of inflows into those ETFs is estimated at around $800 million in the initial days of trading, according to digital-asset company Fineqia International. Inflows into ETFs provided by
BlackRock
and Fidelity have been offset by outflows from the Grayscale Bitcoin Trust ETF which has a higher fee compared with rivals.
While the scale of inflows into the ETFs may be viewed as disappointing, optimists for the crypto sector can take heart from the volume of trading taking place.
“With newly approved spot Bitcoin ETFs … hitting more than $11 billion [in] volume in just four days, their strong beginnings seem to be supporting the market sentiment and the price of Bitcoin,” wrote Yuya Hasegawa, an analyst at crypto exchange Bitbank, in a research note.
Beyond Bitcoin,
Ether
—the second-largest cryptocurrency—was down 0.3% at $2,539. Ether has mostly maintained the gains it made after the Bitcoin ETF approval, which pushed it up from around $2,300, with speculation it could be the next digital asset to gain approval for ETFs tied to its spot trading.
Among smaller cryptocurrencies,
Solana
was up 3.4% but
Cardano
was down 1.2%.
Dogecoin
gained 0.1%.
Write to Adam Clark at [email protected]
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