Bitcoin ETFs Attract Nearly $1 Billion in Inflows Last Week
Bitcoin ETFs concluded last week with $997.70 million in net inflows, marking the highest demand in six months. These ETFs have significantly influenced Bitcoin and other cryptocurrencies since the start of the year by facilitating diverse inflows.
Retail investors account for 80% of the total assets under management in Spot Bitcoin ETFs.
Bitcoin ETFs Changing The Narrative
Bloomberg data indicates that Bitcoin ETFs have dominated the ETF market in 2024, securing the top four positions for inflows among all newly launched ETFs. Of the 575 ETFs introduced this year, 14 of the top 30 focus on Bitcoin or Ethereum, with the BlackRock IBIT fund leading at over $23 billion in inflows year-to-date.
Despite Bitcoin's consolidation below $68,000, Spot Bitcoin ETFs continued to perform well, with $294.29 million in weekly inflows recorded on October 21, culminating in $402.08 million by October 25. Currently, these ETFs hold approximately 938,700 BTC, nearing the 1 million BTC milestone. Retail investors remain the primary contributors to this demand, holding 80% of the Spot BTC ETFs.
Initially designed for institutional investors, Spot Bitcoin ETFs have gained popularity among individual investors due to regulatory clarity. Institutional holdings have increased by 30% since Q1 2024, with investment advisers showing the most significant growth, raising their holdings by 44.2% to 71,800 BTC this quarter.
What’s Next For Spot Bitcoin ETFs?
The rapid growth of Bitcoin ETFs has attracted 1,179 institutions, including major firms like Morgan Stanley and Goldman Sachs, within a year. In comparison, Gold ETFs garnered only 95 institutions in their first trading year.
This trend of increasing institutional investments in Bitcoin is expected to persist, positively impacting Bitcoin's price outlook. As these ETFs draw more institutional capital, they may lead to enhanced BTC dominance, improved market efficiency, and reduced volatility, benefiting the broader cryptocurrency ecosystem.
As of now, Bitcoin is trading at $67,100.
Featured image from Reuters, chart from TradingView