Bitcoin (BTC) is riding a wave of enthusiasm, with its ongoing price resurgence driving investors worldwide to seek exposure through exchange-traded products (ETPs). According to bold.report, global ETPs linked to Bitcoin have recorded a staggering 25,675 BTC inflow—equivalent to $1.74 billion—in just seven days. This surge marks the most significant inflow since July, underscoring the growing appetite for BTC among institutional and retail investors alike.
ETPs – The New Gold Rush
Currently, Bitcoin ETPs hold approximately 1.1 million BTC, a sum reminiscent of Satoshi Nakamoto’s wallet. ETPs encompass various investment vehicles, including exchange-traded funds (ETFs) and exchange-traded notes (ETNs), offering investors a convenient way to gain exposure to Bitcoin without directly purchasing the cryptocurrency.
As Bitcoin’s price has increased by 15% since its recent lows on October 10, the excitement in the market has intensified. BTC is now just 8% away from its all-time high achieved in March, as reported by CoinDesk. This rally is fueled by several key factors, including expectations for Federal Reserve rate cuts and the rising probability of a pro-crypto Donald Trump winning the upcoming November 5 U.S. Presidential election.
The Spot ETF Boom
The interest in Bitcoin ETPs is mirrored in the performance of U.S.-listed spot ETFs, which have attracted nearly $1.9 billion in investor money since October 14, translating to about 21,450 BTC. To put this into perspective, the inflows from Bitcoin ETF investors represent roughly 48 days of mined supply, with approximately 450 BTC mined daily. This demand signifies a robust trend, especially as Bitcoin ETFs have amassed over $20 billion in net inflows since their inception—an impressive feat that took Gold ETFs about five years to achieve, as noted by Bloomberg’s ETF Analyst Eric Balchunas.
Ether ETFs Join the Rally
Not to be overshadowed, the U.S.-listed spot Ether (ETH) ETFs also experienced a noteworthy uptick, with $48.4 million flowing in on October 17, marking the largest inflow since September 27. Notably, BlackRock’s ETHA garnered $23.6 million, bringing its lifetime total to $1.3 billion. Meanwhile, Fidelity’s FETH saw inflows of $31.1 million, nearing $500 million in total net inflows. This robust demand for Ether ETPs indicates that investors are not only bullish on Bitcoin but also optimistic about the broader cryptocurrency landscape.
The current surge in Bitcoin’s price and the consequent inflows into ETPs reflect a pivotal moment in the cryptocurrency market. With increasing institutional interest and favorable regulatory outlooks, Bitcoin and Ethereum ETPs are becoming an attractive proposition for investors looking to capitalize on the evolving landscape of digital assets. As market dynamics continue to shift, the trend toward cryptocurrency ETPs is likely to gain further momentum, positioning them as a staple in investment portfolios worldwide.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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