Key Points
- Spot Bitcoin ETFs are experiencing record inflows, indicating increased investor demand.
- Former Chinese finance minister Lou Jiwei has warned about the risks of cryptocurrencies and urged for careful scrutiny of crypto advancements.
After a period of uncertainty, spot Bitcoin (BTC) exchange-traded funds (ETFs) seem to be gaining momentum, as indicated by unprecedented inflows.
Bitcoin ETF Inflows
As of 27th September, data from Farside Investors showed cumulative inflows of $494.4 million into Bitcoin ETFs. Unusually, the ARK 21Shares Bitcoin ETF (ARKB) led the inflows with $203.1 million in new investments, surpassing the typically dominant BlackRock’s iShares Bitcoin Trust (IBIT).
Other ETFs, such as Fidelity’s FBTC and Grayscale’s GBTC, also saw substantial inflows, indicating a growing investor appetite for Bitcoin as it regains its value amidst a bullish market trend.
Bitcoin Price Fluctuations
Despite challenges in surpassing the $60,000 mark just a few days ago, Bitcoin surged to $65,000 on 27th September. However, the latest price of Bitcoin, as reported by CoinMarketCap, is $63,602, reflecting a slight decline of 2.92% over the past 24 hours. This volatility underscores the unpredictable nature of the cryptocurrency market, even as interest in Bitcoin investment products continues to rise.
In other news, Bitcoin Whale highlighted that demand for Bitcoin is exceeding supply, with spot Bitcoin ETFs purchasing 17,009 BTC this week, while BTC Miners only created 2,250 more Bitcoin.
Chinese Finance Minister’s Warning
While cryptocurrency interest grows, former Chinese finance minister Lou Jiwei has urged for a careful examination of crypto advancements. During the 2024 Tsinghua Wudaokou Chief Economists Forum in Beijing, he warned about risks to financial stability, including volatility and money laundering. He also noted the changing stance of the US, especially after the SEC approved spot Bitcoin ETFs.
As cryptocurrency adoption continues to rise and the sector evolves, it will be interesting to see how these developments progress and what implications they have for the future.