Key Points
- Bitcoin ETFs have seen cumulative inflows of $21 billion, with Bitcoin’s price nearing $70,000.
- BlackRock’s iShares Bitcoin Trust (IBIT) dominates the Bitcoin ETF market, surpassing $23 billion in total net inflows.
Bitcoin’s [BTC] price trajectory has been noteworthy, with the cryptocurrency consistently hitting new milestones and crossing significant price thresholds.
This week, BTC crossed the $68,000 mark, moving closer to the $70,000 valuation.
Bitcoin’s Current State
At the moment, the price has fallen to $67,442, a 2.25% decrease over the past day. Despite this, the monthly gains remain robust at 6.86%.
The cryptocurrency is approximately 3.65% away from reaching $70,000. Given the record inflows into Bitcoin ETFs, this target seems achievable.
Data from SoSo Value reveals that on October 21st, the total net inflows were $294.29 million, contributing to a total inflow of $21.23 billion.
Additionally, the total net assets were $65.34 billion, accounting for 4.88% of the cryptocurrency’s total market capitalization.
IBIT Leading the Market
BlackRock’s iShares Bitcoin Trust (IBIT) has been a significant contributor to these inflows. Despite a dip in price, IBIT recorded inflows of $329 million on October 21st.
It outperformed all other Bitcoin ETF products, with total net inflows exceeding $23 billion.
Eric Balchunas, a senior ETF analyst at Bloomberg, stated that IBIT had an exceptional week, attracting $1.1 billion in new cash.
Furthermore, it surpassed Vanguard’s VTI for third place in YTD flows.
Bitcoin ETFs vs Gold ETFs
The impressive inflows into Bitcoin ETFs have led to questions about whether they are drawing investors away from traditional safe-haven assets.
Balchunas commented on the competition between Bitcoin and gold, stating that Bitcoin and its ETFs may have overshadowed gold this year.
He estimated that without the emergence of Bitcoin ETFs, gold could have seen inflows of up to $10 billion.
This shift is likely due to Bitcoin’s growing popularity and its emerging role as a competitor to gold in the asset market.
Institutional vs Retail Interest
The position of BTC ETFs in the market reflects increasing institutional interest, while retail interest appears to be waning.
Recent data from Google Trends shows a significant decline in searches for “Bitcoin” and “Bitcoin ETF”.
Interest in “Bitcoin ETF” has been low since the launch of spot ETFs in January 2024, with a score of just 2 last week.
Similarly, searches for “Bitcoin” have dropped significantly from March, with a score of 33 last week. This stark contrast highlights the shift in market dynamics.