Originally published on: October 17, 2024
US-based spot Bitcoin exchange-traded funds (ETFs) have achieved a significant milestone, surpassing $20 billion in total net flows despite Bitcoin’s price remaining stuck in a prolonged downtrend.
According to Eric Balchunas, a senior ETF analyst at Bloomberg, reaching $20 billion in net flows is a challenging metric for ETFs to grow. This achievement highlights the increasing investor interest in Bitcoin ETFs in the United States.
Although ETF inflows continue to rise, Bitcoin’s price has struggled to exceed $68,300 since June, maintaining a downward trajectory for the past seven months. This downward trend in Bitcoin’s price has persisted since March, as indicated by data from Cointelegraph.
It took US spot Bitcoin ETFs only 10 months to reach the $20 billion net flow milestone, showcasing strong investor demand compared to the five years it took gold ETFs to achieve a similar milestone, as noted by Balchunas.
Following three consecutive days of negative outflows, Bitcoin ETF inflows surged on Oct. 11, starting a four-day winning streak with over $253 million in cumulative net inflows. By Oct. 16, US ETFs had accumulated more than $458 million worth of BTC, according to Farside Investors data.
As a result of the continuous inflows, Bitcoin ETFs now hold over $65.4 billion in cumulative on-chain Bitcoin holdings, representing 4.9% of the current Bitcoin circulating supply, according to Dune data.
Some analysts are anticipating a three-month rally for Bitcoin, reaching up to $92,000 starting in October, based on historical chart patterns and Bitcoin’s average monthly returns for the fourth quarter. Historically, during Bitcoin halving years like 2024, BTC has experienced three consecutive months of rallies following September’s downtrend.
In previous Bitcoin halving years, such as 2020, the price saw significant increases in October and November, culminating in a six-month rally that lasted until March 2021.
With predictions of a potential price surge and increasing investor interest, the future of Bitcoin ETFs and the cryptocurrency market remains intriguing for investors looking to capitalize on these trends. Subscribe to the Finance Redefined newsletter to stay informed on the latest developments in the world of finance and cryptocurrency.
