Bitcoin (BTC) price has regained upward momentum in the crypto market amid the significant milestone recently achieved by the United States spot bitcoin exchange-traded funds (ETFs).
With the rising capital inflow into these crypto ETFs, this development is positive. It underscores the growing adoption of the leading cryptoasset as a long-term investment and store of value among individuals, businesses, and institutions.
US spot bitcoin ETFs hit $21B in cumulative net inflows
Over the past few weeks, the momentum behind spot BTC ETFs has been evident. As of October 18, 2024, the cumulative total net inflow across 11 US spot BTC ETFs reached the $20.94 billion mark, according to SoSoValue data. This milestone comes about 197 days after these crypto products went live for trading.
The month of October 2024 alone has seen record-breaking spot BTC ETF inflows. On October 16, US spot BTC ETFs recorded a daily total net inflow of $459 million. This consistent capital inflow has been largely driven by BlackRock’s iShares Bitcoin Trust (IBIT), which contributed $393 million in profits in a single day, further strengthening its dominance in the BTC ETF scene.
Read also: Bitcoin hovers around $60K as U.S. spot bitcoin ETFs record biggest daily outflow in 3 months.
On October 18, the daily total net inflow stood at $273.71 million, sustaining net inflows for six consecutive days. Moreover, SoSoValue data showed that the total net assets across 11 US spot ETFs and their total value traded reached $66.11 billion and $2.23 billion, respectively.
Notably, several factors are fueling the increasing inflows into BTC ETFs. First, the growing institutional acceptance of BTC as a legitimate asset class is a key driver. Large-scale investors, including pension funds, asset managers, and hedge funds, view BTC ETFs as a safer and more regulated way to gain exposure to the leading cryptoasset. Unlike direct BTC ownership, ETFs are traded on highly regulated platforms, making them more accessible to investors who may be hesitant about navigating the complexities of directly holding BTC.
In addition, macroeconomic conditions are playing a role. With increasing concerns about inflation and rumours about global recession, investors are looking for alternative assets to diversify their portfolios. Bitcoin, often referred to as “digital gold,” has become an attractive option for those seeking a hedge against inflation and economic instability.
BTC traders targeting $70,000
Following the notable capital inflow into US BTC ETFs in October 2024, the leading cryptoasset has gained over 9% so far this month. At the time of writing, BTC is trading at $68,500 with traders targeting the $70,000 resistance.
Considering the prevailing bullish sentiments in the crypto market and positive developments, including interest rates cut by the US Feds, there’s a relatively high possibility for BTC to breach $70,000 this month and perhaps, hit a new all-time high above $73,737.
Read also: Spot Bitcoin ETFs and the Crypto Market: The Other Side of the Coin
