Key Points
- Bitcoin ETFs saw the highest inflows in nearly five months, with a net inflow of $870 million on 29th October.
- The total Bitcoin held by U.S. spot ETFs is projected to surpass 1 million BTC by next Wednesday.
Bitcoin [BTC] continues to surprise the market with its impressive price surge and unprecedented exchange-traded fund (ETF) inflows.
On the last day of October, BTC reached a peak of over $73,000. At the same time, spot BTC ETFs reported a net inflow of $870 million, as per data from SoSo Value.
This was the highest single-day net inflow since early June, a trend typically seen when investors anticipate downturns and “buy the dip.”
Surge in Bitcoin ETF inflows
Eric Balchunas, a senior ETF analyst at Bloomberg, also found this rise somewhat unusual. However, he explained that volume can occasionally spike during a “FOMO-ing frenzy.”
Balchunas also mentioned that iShares Bitcoin Trust ($IBIT) saw trading volumes soar to $3.3 billion, the largest figure in six months.
This was not the only product experiencing increased trading volumes. All major Bitcoin ETFs saw increased activity, indicating that FOMO was in full swing.
ETFs nearing Satoshi’s holdings
Inflows were not the only area where ETFs appeared to be flourishing. Balchunas highlighted a significant milestone for Bitcoin ETFs, with the total BTC held by U.S. spot ETFs likely to exceed 1 million BTC by next Wednesday.
Moreover, it could surpass the holdings attributed to Bitcoin’s creator, Satoshi Nakamoto, by mid-December.
Balchunas noted that the ETFs have been acquiring approximately 17,000 BTC weekly, pushing them closer to holding more Bitcoin than the famous Satoshi wallet.
However, he warned that this rapid accumulation could face potential disruption, stating, “Anything can happen, eg a violent selloff and all this is delayed albeit still inevitable.”
Meanwhile, the acceptance of Bitcoin ETFs has expanded across all types of institutional investors. Balchunas noted that Emory University recently became the first endowment fund to report a Bitcoin ETF position.
The university disclosed ownership of over $15 million worth of shares in the Grayscale Bitcoin Mini Trust in a filing with the U.S. Securities and Exchange Commission [SEC].
This development indicates that Bitcoin ETFs are now represented across a wide range of institutional categories, including banks, hedge funds, insurance companies, advisors, pensions, venture capital, and family offices.
For an ETF market segment less than a year old, this level of institutional adoption underscores Bitcoin’s evolving role in traditional finance and its appeal among professional investors.