Bitcoin ETFs Attract $1 Billion in Three Days as Bitcoin Price Surges

TLDR

  • US spot Bitcoin ETFs saw over $1 billion in net inflows in three days
  • Fidelity and BlackRock led with combined inflows of about $760 million
  • Monday saw the highest inflows since early June at $556 million
  • Bitcoin price rallied, crossing $65,000 and approaching $68,000
  • Standard Chartered analysts predict Bitcoin may near its all-time high before the US election

The newly launched US spot Bitcoin exchange-traded funds (ETFs) have experienced a significant boost in investor interest, accumulating over $1 billion in net inflows over just three trading days.

This surge in investment comes as Bitcoin’s price rallies, approaching its all-time high.

According to data from Farside Investors, the spot Bitcoin ETFs have seen a remarkable uptick in net purchases. The funds attracted $253 million last Friday, ending a brief three-day period of outflows.

This momentum continued into the new week, with Monday seeing a massive $556 million in net inflows, the highest level recorded since early June.

The trend persisted on Tuesday, with net buying topping $371 million and no redemptions reported. This brings the total inflow for the three-day period to over $1 billion, highlighting the strong market demand for Bitcoin investment products.

Leading the pack in this ETF surge are financial giants Fidelity and BlackRock. These two firms have attracted approximately $760 million in combined inflows during this period.

Bitcoin Price on CoinGecko
Bitcoin Price on CoinGecko

BlackRock’s IBIT fund has been particularly successful, capturing the largest share of inflows on Tuesday with over $288 million. Fidelity’s FBTC also performed well, taking in around $35 million on the same day.

Other players in the Bitcoin ETF space have also benefited from this influx of investor capital. Funds managed by Bitwise, Ark Invest/21Shares, VanEck, WisdomTree, and Grayscale all experienced gains.

Notably, Grayscale’s GBTC and BTC funds have extended their winning streak to two consecutive days.

This surge in ETF inflows has coincided with a significant rally in Bitcoin’s price. The leading cryptocurrency crossed the $65,000 mark on Monday and continued its upward trajectory, moving closer to $68,000 on Tuesday.

According to data from CoinGecko, Bitcoin is now just 9% away from its all-time high.

The rapid growth of Bitcoin ETFs and the cryptocurrency’s price rally have caught the attention of market analysts. Standard Chartered’s team of analysts has made a bold prediction, suggesting that Bitcoin could approach its previous high of approximately $73,800 ahead of the upcoming US presidential election.

These analysts also noted a potential political factor that could influence Bitcoin’s performance. They suggest that the improving odds for Donald Trump’s re-election could create a favorable environment for Bitcoin.

This assessment is based on the historical perception that Trump’s presidency has been viewed positively by many in the cryptocurrency community.

Source: https://blockonomi.com/bitcoin-etfs-attract-1-billion-in-three-days-as-bitcoin-price-surges/