Originally published on: October 23, 2024
Institutional investors in Bitcoin have hit pause on their buying spree, leading to a decrease in inflows to US spot Bitcoin exchange-traded funds (ETFs) after a two-week buying streak. This shift comes as the BTC price action remains stagnant and hovers around 10% below its all-time highs.
On October 22, US ETF inflows turned net negative, with a total outflow of $79.1 million for the day. The ARK 21Shares Bitcoin ETF was the primary contributor to this outflow, with $134 million leaving the fund. Despite this, BlackRock’s iShares Bitcoin ETF saw $43 million in inflows, although significantly lower than the previous day’s $329 million.
The trend of net negative flows for US ETFs last occurred on October 10, when $81.1 million was shed. However, over the past month, ETFs have experienced a revival, attracting new institutional investors and driving the total assets under management to a record $65 billion.
Institutional ownership of BTC through ETFs is currently at around 20%, with 1,179 institutions joining Bitcoin’s cap table this year. European investors have also shown interest in US ETFs, contributing over $100 million year-to-date.
The success of ETFs in the Bitcoin market has been highlighted by onchain analytics firm Glassnode, which reported over $5 billion in net inflows in Q3 alone. This strong demand for direct exposure to Bitcoin among institutional investors has been a significant driver of the ETF market’s growth.
It is important to note that this article is for informational purposes only and does not constitute investment advice. Readers are advised to conduct their own research before making any investment decisions.
For more insights and analysis on market trends, subscribe to our Markets Outlook newsletter, delivered every Monday. Stay informed and make informed investment decisions.
