Tuesday, February 18, 2025

European Investors Drive Record $105 Billion into US Bitcoin ETFs

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Originally published on: October 21, 2024

European investors have set a new milestone by pouring a record $105 billion into spot Bitcoin exchange-traded funds (ETFs) in the United States so far this year. This surge in European investment marks an all-time high for BTCETFs.

Eric Balchunas, a senior ETF analyst at Bloomberg, shared the news of these record European flows in a recent post on Oct. 21. The influx of international ETF investments into the US has been steadily rising, with growing ETF inflows potentially propelling Bitcoin to new all-time highs.

In fact, the majority of the funds flowing into US Bitcoin ETFs contributed to Bitcoin breaking the $50,000 barrier in February 2024. Despite these impressive numbers, Bitcoin has struggled to breach the $70,000 level, last reaching it on July 29.

In addition to the European inflows, Bitcoin achieved another significant milestone this week. Bitcoin’s hashrate, which measures the total computing power securing the network, hit an all-time high on Oct. 21. This milestone underscores the network’s growing security and the rising costs of BTC mining.

According to Balchunas, US Bitcoin ETFs surpassed $20 billion in total net flows on Oct. 17, a challenging metric for ETFs to achieve. In comparison, it took over five years for Gold-based ETFs to reach this milestone. Despite these achievements, Bitcoin’s price has remained below $69,500 since July 29.

Analyzing this price stagnation, Bitfinex analysts suggest that delayed effects of ETF inflows may be at play, as it typically takes several days for these inflows to impact spot BTC prices. The order book indicates that crypto traders are leveraging ETF flows as exit liquidity for their trades.

The positive momentum of Bitcoin ETFs is evident in the six consecutive days of net inflows recorded by Farside Investors data. Recent data shows that on Oct. 14, US Bitcoin ETFs purchased a total of $555 million in Bitcoin, leading to a 5% daily increase in the price of Bitcoin.

As Bitcoin ETFs continue to amass holdings, they now represent 4.9% of the current circulating supply of Bitcoin, according to data from Dune. This substantial increase in institutional investment highlights the growing confidence in Bitcoin as a long-term asset.

With European investors driving a record influx into US Bitcoin ETFs, the future looks bullish for Bitcoin as it strives to break through key resistance levels and reach new milestones. Stay tuned for more updates on the evolving world of cryptocurrency investments.

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