Crypto Adoption Stays Strong While U.S. Spot Bitcoin ETFs See Positive Inflows

The cryptocurrency market shows indications of resilience: steady adoption rates within key regions, in concert with a partial reversal of the recent outflow trend into U.S. spot Bitcoin ETFs. Also, a recent report from Gemini shows consistent crypto ownership across major economies, even as U.S. spot Bitcoin ETFs record their first net inflows after eight days of consecutive outflows.

Crypto Ownership Remains Steady in Key Markets

Taking cryptocurrency ownership as an example, the 2024 Global State of Crypto from Gemini shows that the asset class is resilient despite market fluctuations across countries, including the U.S., UK, France, and Singapore. The report further notes that 57% of current crypto owners are not hesitant to add the asset class to their investment portfolios, citing firm belief in the success of digital money over the long haul.

• Steady Ownership Rates: The report further shows that at 21% in 2022-2024, the US maintained practically the same ownership rate as the UK. France's ownership rate increased from 16% to a total of 18%, and Singapore decreased from 30% to 26%.

• Investment Motivation: Nearly 65% of crypto owners buy and hold assets for long-term investment, and 38% see it as a hedge against inflation, reflecting confidence in digital assets as an alternative financial instrument.

• ETF Adoption: 37% of U.S. respondents already hold their crypto via an ETF, which would indicate that recent Bitcoin and Ether spot ETF approvals have driven stable growth in crypto ownership.

Crypto Investors’ Resilience and Market Outlook

It also points out that Gemini's report shows the resilience of crypto investors through various market cycles; many owners plan to re-enter the market. This survey was conducted between May and June of 2024 and has managed to demonstrate such that a majority of crypto holders are comfortable putting at least 5% of their portfolios toward digital assets.

 

Contrarily, the report also revealed that female crypto ownership declined as only 31% identified as holders from 42% back in 2022. Conversely, male ownership surged upwards from 58% to 69%, with a difference, meaning the market today characterizes a gender gap.

U.S. Spot Bitcoin ETFs Break Outflow Streak with $28M Inflows

After eight consecutive days of outflows, U.S. spot Bitcoin ETFs gained $28.72 million on Monday, marking a positive change in investor sentiment. Fidelity's FBTC dominated the headlines, flowing in $28.6 million, while Bitwise's BITB came in second, at $21.99 million.

• Mixed Performance: The ARKB from Ark Invest and 21Shares, and Invesco's BTCO generated more modest returns. Meanwhile, Grayscale's GBTC continued to suffer outflows for $22.76 mln. The BlackRock's IBIT also saw outflows for $9.06 mln, the latest in a string of negative flows since the latter part of August.

• Market Context: Digital asset investment products have seen major outflows of $726 million, the largest recorded since March 2024. Bitcoin products accounted for outflows totaling $643 million, while some investors hedged against further declines into short-Bitcoin products.

Spot Ethereum ETFs Struggle Amid Persistent Outflows

Such funds remained impervious, with Bitcoin still recording inflows, but spot Ethereum ETFs continued to struggle, extending the net outflows streak to five consecutive days on Monday, with outflows amounting to $5.20 million. The lion's share of the outflows came from Grayscale's ETHE, while Fidelity's FETH and Bitwise's ETHW recorded minor inflows.

Despite the languishing, Ethereum spot ETFs have culled a total of upwards of $6 billion in net assets so far. The iShares Ethereum Trust ETF by BlackRock also became the seventh-largest ETF launch of 2024, topping $1 billion in inflows.

Conclusion

The latest data underlines the evolution of crypto-investments. Adoption indeed is consistent among investors in the main markets, but mixed performance by spot Bitcoin and Ethereum ETFs reflects broader volatility in the market. In any case, it speaks volumes of the resilience of crypto owners and the growing acceptance of ETFs, showing that digital assets remain a key component of the world's financial system.