Spot Bitcoin ETFs Reach 1 Million Bitcoin Milestone Amid Influx
By: Isha Das
In a notable development for the cryptocurrency sector, the combined on-chain assets under management (AUM) of all spot Bitcoin ETFs have surpassed a significant milestone of 1 million Bitcoin. This achievement underscores growing investor confidence as major funds, such as BlackRock’s Bitcoin Trust (IBIT), have recorded substantial inflows, accumulating nearly $890 million over a short period. The influx primarily occurred on October 30, with BlackRock dominating the scene by contributing $872 million.
The surge in Bitcoin ETFs also coincides with Bitcoin's price closing in on its all-time high of $73,700, previously recorded in March. The recent price rally to $73,500 fuels optimism among investors, encouraging more substantial investments into Bitcoin ETFs. Various analysts have noted that these inflows could be linked to political speculations, particularly surrounding the potential impact of a Republican win in the upcoming US elections. Such a victory is expected to have a favorable influence on the digital asset market due to GOP’s typically supportive stance on cryptocurrency.
According to data from Coinglass and Bloomberg, these recent investments mark the highest inflow since the inception of Bitcoin ETFs in the US. The year-to-date inflows for this investment segment have surpassed $23 billion. Contributors to the record-setting inflow figures include Invesco’s BTCO and Valkyrie’s BRRR, which gathered $7.2 million and $6.1 million, respectively. Nonetheless, Bitwise’s BITB ETF witnessed an outflow of $23.9 million, highlighting the volatile nature of the market.
Industry experts have highlighted the speculative dynamics of the market, advising caution despite the bullish sentiments. Notable figures such as Eric Balchunas have projected that US spot ETFs could exceed holdings equivalent to Satoshi Nakamoto's portfolio by the end of the year, should this momentum continue. However, they stress the potential for market unpredictability, warning of risks associated with a sudden selloff that could affect the upward trajectory of Bitcoin ETFs. As of the latest metrics, Bitcoin holds at $72,360, reflecting an upward movement of over 8% within a week.
