Bitcoin ETF Draws Record Inflows: $60 Billion Milestone Reached, Potential for New High Before US Election

Bitcoin ETF Draws Record Inflows: $60 Billion Milestone Reached, Potential for New High Before US ElectionAmidst the recent surge in Bitcoin prices, US spot Bitcoin ETFs have witnessed a rapid surge in assets under management (AUM). According to Farside Investors, 11 US spot Bitcoin ETFs attracted a net inflow of $556 million on October 14th, marking the largest single-day inflow since early June

Bitcoin ETF Draws Record Inflows: $60 Billion Milestone Reached, Potential for New High Before US Election

Amidst the recent surge in Bitcoin prices, US spot Bitcoin ETFs have witnessed a rapid surge in assets under management (AUM). According to Farside Investors, 11 US spot Bitcoin ETFs attracted a net inflow of $556 million on October 14th, marking the largest single-day inflow since early June. While inflows decreased to $371 million on October 15th, they still remained significant.

Blockchain data analytics platform CryptoQuant reveals that the AUM of US spot Bitcoin ETFs has reached a remarkable milestone of $600 billion due to continuous capital injections. Since October 11th, Bitcoin prices have soared from under $59,000 to surpass $67,000, with the latest price reaching $67,730 at the time of writing. Analysts at Standard Chartered Bank predict that Bitcoin could approach its historical high of around $73,800 before the US presidential election.

Bitcoin's Surge Propels Spot Bitcoin ETF Boom

Bitcoin's price has climbed over 13% since October 11th, rising from under $59,000 to over $67,000. This surge has attracted a significant influx of funds into spot Bitcoin ETFs.

These spot Bitcoin ETFs continued their "gold rush" on October 15th, attracting a combined net inflow of $371 million. BlackRock's iShares Bitcoin Trust ETF (IBIT) stood out, registering a single-day inflow of $289 million, accounting for nearly 80% of the total net inflow for all spot Bitcoin ETFs that day.

Over the 13 trading days from September 27th to October 15th, US spot Bitcoin ETFs accumulated a net inflow of $1.496 billion. The top four in terms of net inflows were BlackRock's IBIT ($755 million), Fidelity's FBTC ($397 million), Invesco and Galaxy's BTCO ($116 million), and ARKInvest and 21Shares' ARKB ($114 million).

Spot Bitcoin ETF AUM Breaks $600 Billion, Sparks Industry Debate

The sustained inflow of capital has propelled the AUM of US spot Bitcoin ETFs to surpass $600 billion, a milestone that has garnered widespread attention in the industry. Some analysts predict that the AUM of these spot Bitcoin ETFs could double by 2025 and quadruple by 2027.

Spot Bitcoin ETFs were approved in January 2024, and within just nine months, they have attracted a massive influx of funds, exceeding the amount accumulated by some of the top ETF products in the overall market. According to ETFGI, an independent research and consultancy firm, the global ETF market experienced rapid growth in the first eight months of 2024, with newly listed ETFs accumulating substantial assets.

It's noteworthy that three of the top five ETFs by AUM in 2024 were spot Bitcoin ETFs, and five out of the top 10 were spot Bitcoin ETFs, highlighting their strong capital attraction and powerful growth momentum.

Spot Ethereum ETFs Lag Behind but Still Attract Capital

While spot Ethereum ETFs have not seen ideal net inflows recently, they remain popular among investors in the long term. In the ranking of newly launched ETFs/ETPs in 2024, Grayscale's two spot Ethereum ETFsGrayscale Ethereum Trust (ETHE) and Grayscale Ethereum MiniTrust ETH (ETH)both made it into the top 20 with AUM of $4.53 billion and $9.25 billion respectively as of August.

The impressive performance of cryptocurrency ETFs, especially spot Bitcoin ETFs, has sparked industry discussions.

Bloomberg ETF analyst Eric Balchunas recently compared Bitcoin ETFs to gold-based products on social media. He noted that while gold prices reached historical highs 30 times in 2024, gold ETFs had a net inflow of just $1.4 billion, whereas Bitcoin ETFs saw over $19 billion in inflows.

According to media reports, during BlackRock's Q3 2024 earnings call, Larry Fink, Chairman and CEO of the world's largest asset manager, expressed support for Bitcoin as a legitimate investment instrument.

As Fink explained, BlackRock's spot Ethereum ETF product, iShares Ethereum Trust (ETHA), attracted over $1 billion in net inflows within two months of its launch. Meanwhile, the company's spot Bitcoin ETF product, IBIT, grew to $23 billion in size in the first nine months of 2024.

I believe the utilization of assets will become increasingly a reality around the globe. We see Bitcoin itself as an asset class. It is an alternative to other commodities like gold, he said.

Conclusion

The rapid growth of US spot Bitcoin ETFs reflects the enduring enthusiasm of investors for cryptocurrency investments. As Bitcoin prices continue to rise, the size of spot Bitcoin ETFs is expected to continue expanding, making them a significant and undeniable force in the cryptocurrency market.