Bitcoin ETF Gold Rush: Over $500 Million Inflows in a Single Day, AUM Surpasses $60 Billion

Bitcoin ETF Gold Rush: Over $500 Million Inflows in a Single Day, AUM Surpasses $60 BillionThe size of US spot Bitcoin ETFs continues to grow rapidly as Bitcoin prices keep climbing and money flows in. According to data tracked by Farside Investors, 11 US spot Bitcoin ETFs saw net inflows of $556 million on October 14, marking the largest single-day inflow since early June

Bitcoin ETF Gold Rush: Over $500 Million Inflows in a Single Day, AUM Surpasses $60 Billion

The size of US spot Bitcoin ETFs continues to grow rapidly as Bitcoin prices keep climbing and money flows in. According to data tracked by Farside Investors, 11 US spot Bitcoin ETFs saw net inflows of $556 million on October 14, marking the largest single-day inflow since early June. While inflows were slightly lower on October 15, they still reached a considerable $371 million. Blockchain data analytics platform CryptoQuant also revealed that due to continuous inflows, the assets under management (AUM) of US spot Bitcoin ETFs have hit a significant milestone of $60 billion.

Bitcoin's price has been on an upward trajectory since October 11, rising from under $59,000 to over $67,000. As of writing, the latest price stands at $67,730. Analysts from Standard Chartered Bank predict that Bitcoin could approach its all-time high of around $73,800 before the US presidential election.

Bitcoin ETFs' Astonishing "Gold Rush" with Over $500 Million in Daily Inflows

Since last Thursday (October 11), Bitcoin's price has surged by more than 13%, climbing from under $59,000 to $67,000. This rally has attracted a significant influx of funds into spot Bitcoin ETFs.

According to Farside Investors, on October 14, the 11 US spot Bitcoin ETFs collectively saw net inflows of $556 million, reaching the highest level since early June. On that day, Bitcoin reached a two-week high of $66,500 in late trading. Fidelity's Fidelity Wise Origin Bitcoin Fund (FBTC) saw the largest single-day inflow of $239 million, followed by Bitwise Bitcoin ETF (BITB) at $100 million. Several other products also recorded substantial net inflows.

On October 15, these spot Bitcoin ETFs continued to demonstrate their "gold rush" capabilities, with total net inflows reaching $371 million. Among them, iShares Bitcoin Trust ETF (IBIT), owned by BlackRock, performed remarkably, attracting $289 million in inflows on that day, accounting for nearly 80% of the total net inflows for all spot Bitcoin ETFs that day.

Overall, from September 27 to October 15, over 13 trading days, US spot Bitcoin ETFs saw a combined net inflow of $1.496 billion. The top four in terms of net inflows were IBIT managed by BlackRock, FBTC by Fidelity, BTCO jointly launched by Invesco and Galaxy, and ARKB jointly launched by investment firm ARKInvest and 21Shares, with net inflows of $755 million, $397 million, $116 million, and $114 million, respectively.

AUM Breaks $60 Billion, Further Growth Expected

A significant milestone has been reached as the assets under management (AUM) of US spot Bitcoin ETFs have hit $60 Billion, according to blockchain data analytics platform CryptoQuant. This is due to the ongoing flow of funds into these vehicles. Standard Chartered Bank's analysts predict that Bitcoin could approach its all-time high of around $73,800 before the US presidential election. Other analysts project that the size of these spot Bitcoin ETFs could double by 2025 and quadruple by 2027.

Cryptocurrency ETFs Booming, Ranking Among Top 3 for New ETF Size in 2024

Spot Bitcoin ETFs were approved earlier this year in January, and within just nine months, they have attracted massive inflows of funds, even surpassing some of the top-ranked ETFs in terms of total market size. According to ETFGI, an independent research and consultancy firm, the global ETF market experienced rapid growth until the end of August 2024. New ETFs launched this year have accumulated substantial assets. Among these newly listed products, spot Bitcoin ETFs are in the top three by size; they occupy five spots in the top ten, showcasing their strong "gold rush" capabilities and robust growth momentum.

Ethereum ETFs Lag Behind, Still Attract Funds

While spot Ethereum ETFs have not been attracting significant net inflows recently, over the long term, these products have proven popular with investors. In the rankings of the largest newly established ETFs/ETPs this year, Grayscale's two spot Ethereum ETFs, Grayscale Ethereum Trust (ETHE) and Grayscale Ethereum Mini Trust ETH (ETH), both ranked within the top 20, with AUM of $4.53 billion and $9.25 billion, respectively, as of the end of August.

Cryptocurrency ETFs Gain Attention, Institutional Funds Pour In

The outstanding performance of cryptocurrency ETFs, particularly spot Bitcoin ETFs, has sparked industry-wide discussion. In a recent social media post, Eric Balchunas, a Bloomberg ETF analyst, compared Bitcoin ETFs with gold-backed products. He pointed out that while gold prices hit a new all-time high 30 times this year, gold ETFs have only received net inflows of $1.4 billion, while Bitcoin ETFs have attracted over $19 billion in inflows.

Media reports also indicate that Larry Fink, Chairman and CEO of BlackRock, the world's largest asset management company, expressed his support for Bitcoin as a legitimate investment vehicle during the company's third-quarter 2024 earnings call. According to Fink, 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, has grown to $23 billion in size during the first nine months of this year.

"I believe that tokenization of assets is going to become increasingly real around the world. We see Bitcoin, itself, as an asset class, which is an alternative to other commodities like gold," he said.