Bitcoin ETF Demand Hits 6-Month High

Demand for the US spot Bitcoin Exchange-Traded Funds (ETF) has rebounded after weeks of low activity. This surge in inflows signals a shift in institutional investors’ sentiments, with market participants hopeful for further price gains.

Those cautious about direct Bitcoin exposure now embrace the coin as a regulated investment vehicle.

The Bitcoin ETF Demand Stat from CryptoQuant analysis

In an X post, CryptoQuant founder Ki Young Ju highlighted Bitcoin ETFs’ outstanding performance. He noted that demand has hit a 6-month high, with net inflows totaling 64,962 BTC over the last 30 days.

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The Bitcoin ETFs recorded the last comparable data in April when the coin traded above $72,000. Subsequent bearish trends in price reflected negatively in ETF flows.

For most of May, spot Bitcoin ETFs experienced a decline in holdings corresponding with the coin’s initial retracement below $56,000. However, this pattern soon turned around, with positive inflows hitting monthly highs from June to August until a new decline started in early September.

On September 18, the U.S. economy welcomed a historic interest rate drop, which reversed this gloomy trend. The bullish inflow into has since persisted and recently hit a six-month high.

Current State of Fund Flows

Recent data from Farside Investors showed a major uptrend in the Bitcoin ETF market. Notably, the daily net inflows hit a remarkable $188 million on October 24. It should be noted that since October 11, these ETFs have witnessed only one single-day outflow.

The total inflows recorded during Thursday’s market session amounted to $188 million. BlackRock’s spot Bitcoin ETF, IBIT, stood out, receiving the bulk of total inflows with $165.5 million. This inflow increased IBIT’s net assets to $23.69 billion, indicating the fund’s strong influence.

Bitwise’s BITB came next with daily inflows amounting to $29.6 million. Grayscale’s GBTC experienced a drain of $7.1 million, while other funds posted no new investments. Additionally, the spot ETFs recorded net inflows of $192 million on Wednesday. BlackRock’s IBIT also stood out with inflows of $317.5 million.

BlackRock’s lower fee structure of 0.25% makes it an attractive choice for investors seeking to balance cost efficiency and exposure. Since January, US Bitcoin ETFs have received $21.6 billion in inflows, making it the fastest-growing ETF market this decade.

Institutional Firms with Bitcoin ETF Portfolio

Prominent Wall Street firms have revealed huge positions in this market. In the second quarter of 2024, Goldman Sach reported holding over $400 million in seven of the 11 spot Bitcoin ETFs.

Morgan Stanley also increased its holdings, entering new positions in six other funds worth roughly $189 million. BlackRock’s IBIT accounted for nearly all of that exposure.

Furthermore, Wells Fargo expanded its holdings beyond Grayscale’s GBTC. The firm disclosed owning 37 shares of the ProShares Bitcoin Strategy ETF (BITO). JPMorgan also reported investments in BTC ETFs worth $731,246 in IBIT, BITB, FBTC, and Grayscale’s GBTC.

Amid this broad backing, Bitcoin price has maintained resilience around the $67,000 price range. If this demand is sustained, it can push the price to its previous ATH of $73,750.