Originally published on: October 17, 2024
In a remarkable turn of events, spot Bitcoin exchange-traded funds (ETFs) have witnessed a substantial influx of over $20 billion within just four consecutive days in the United States. Since their launch on Jan. 11, these ETFs have garnered a total of $20.26 billion in cumulative flows, as reported by Farside Investors.
The recent surge in inflows has been particularly impressive, with $1.64 billion flowing into 11 different ETF products offered by prominent names such as ARK 21Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity, and others. BlackRock, the largest asset manager globally, experienced its highest daily inflow in months, receiving $393.4 million on Oct. 16.
Crypto enthusiasts and analysts are captivated by this rapid growth, with some suggesting that the $20 billion milestone marks the fastest growth in ETF history. As Bitcoin continues to break barriers, there is speculation about whether these ETFs could reach $30 billion by the year’s end.
Despite the excitement surrounding the influx of funds, industry experts caution against assuming a direct correlation between inflows and lasting price increases. Amr Taha of CryptoQuant emphasized that while huge inflows are positive, they do not always result in sustained price surges.
As Bitcoin’s price currently sits at $66,860, market observers are closely monitoring the situation, anticipating potential retracements before a possible rally to new all-time highs. With the market abuzz with activity and speculation, investors are advised to conduct thorough research before making any investment decisions.
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