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Bitcoin ETFs in the US saw a single-day increase of over $500 million on October 14, the biggest in over four months. The surge, attributed to institutional investors, pushed Bitcoin’s price above $67,800, a three-month high. Net inflows of Bitcoin have approached $20 billion in the last 10 months. The biggest contributors were Fidelity Wise Origin Bitcoin Fund, Bitwise Bitcoin ETF, BlackRock’s iShares Bitcoin Trust and Ark 21Shares Bitcoin ETF. Factors such as the upcoming US election, a healthier economy, and the global launch of Bitcoin ETF’s were credited for the surge. Bitcoin inflows are poised to surpass gold’s four-year milestone of $20 billion.

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On Oct. 14, Bitcoin ETFs in the US experienced their biggest single-day increase in over 120 days, seeing over half a billion dollars flood in. This pumped Bitcoin’s price up to its highest for more than three months at over $67,800. ETF Store President Nate Geraci described it as an event worth celebrating for the Bitcoin market, as net inflows approached $20 billion within the last 10 months. He expressed amazement at this and made it clear that it was more about institutional investors getting into the game rather than small-scale retail investors.

Looking at the major players, Fidelity Wise Origin Bitcoin Fund brought in the most cash inflow with $239.3 million – the highest since June 4. Bitwise Bitcoin ETF and BlackRock’s iShares Bitcoin Trust netted over $100 million and $79.6 million respectively. Similarly, Ark 21Shares Bitcoin ETF pulled in just under $70 million while Grayscale Bitcoin Trust logged $37.8 million, marking its highest cash inflow since the start of May.

In an effort to explain this uptick in Bitcoin investment, a variety of factors were considered. These include the anticipation of the upcoming US election, as more investors seem prepared to place their bets as both sides in the election have been relatively supportive of cryptocurrency. Also, apparent signs of a healthier economy have reassured investors. This is partly due to the Federal Reserve’s move to low down interest rates. Additionally, more hedge funds are now investing in digital assets, buoyed by the launch of Bitcoin ETF’s globally.

Institutions stepping into the world of Bitcoin ETFs has been a major driver for the recent increases. Mithil Thakore, CEO and co-founder of Bitcoin trading protocol Velar, believes that it’s these big players who are making the difference. He pointed out that Bitcoin inflows are closing in on $20 billion – a milestone gold took more than four years to reach. Similarly, Ben Caselin, chief market officer at VALR, attributes Bitcoin’s resilience in various interest climates to the recent surge.

The institutional uptake of Bitcoin ETFs shot up by 27% in Q2 2024, seeing 262 new firms joining in. However, as Alicia Kao, managing director for cryptocurrency exchange KuCoin, highlighted, retail investors continue to play an important role and currently hold the majority of Bitcoin ETFs.

When comparing Bitcoin ETFs to traditional asset classes like gold, there’s simply no contest. Bitcoin has continuously set new records since its January launch. Contrastingly, while gold has experienced some high points this year, gold ETFs have only seen inflows of $1.4 billion compared to the $20 billion Bitcoin has managed to attract. This surging interest in Bitcoin ETFs over traditional assets like gold could be attributed to Bitcoin’s unique characteristics, its solid performance, and its volatility which can potentially lead to quick gains.

Source: Cointelegraph