Bitcoin ETFs Record $555M in Inflows, the Biggest Since June

Bitcoin’s price also briefly surged past $66,000, which boosted the stocks of crypto-linked firms like CleanSpark and Coinbase. Japanese firm Metaplanet also saw an impressive stock price jump after announcing another major Bitcoin purchase. Analysts are now very optimistic that Bitcoin could potentially target $70,000 soon.

Bitcoin ETFs See Biggest Inflows Since June

Spot Bitcoin exchange-traded funds (ETFs) in the US recorded their largest inflows since June after a total of $555.8 million entered the funds on Monday. This suggests that there is a rise in interest in these ETFs as ten out of twelve spot Bitcoin ETFs reported net inflows.

Fidelity’s FBTC led the inflows after receiving $239.25 million, followed by Bitwise’s BITB, which recorded $100 million in net inflows. BlackRock’s IBIT, which is the largest spot Bitcoin ETF by net assets, saw $79.5 million in inflows, while Ark & 21Shares’ ARKB attracted about $70 million. Grayscale’s GBTC also saw over $37 million in net inflows on the same day.

Bitcoin ETF flow (Source: Farside Investors)

Other spot Bitcoin ETFs from VanEck, Valkyrie, Invesco, Franklin Templeton, and the Grayscale mini trust saw smaller inflows, while WisdomTree and Hashdex’s ETFs had zero flows. The 12 spot Bitcoin funds saw a total trading volume of more than $2.61 billion on Monday, the highest trading volume since Aug. 23. BlackRock’s IBIT ETF accounted for $1.67 billion of this total. 

Since their January launch, these funds have collectively gathered $19.36 billion in net inflows. Nate Geraci, president of ETF Store, was one of the first people to share the impressive inflow milestone, and stated that the almost $20 billion in inflows over 10 months far exceeded pre-launch expectations.

Spot Ether ETFs also saw positive momentum, and reported $17.07 million in net inflows on Monday. BlackRock’s ETHA led the Ethereum inflows with $14.31 million, followed by $1.31 million into Fidelity’s FETH. Invesco’s QETH and 21Shares’ CETH also recorded inflows. In total, US spot Ether ETFs saw a total trading volume of $210.40 million on Monday. 

Ethereum ETF flow (Source: Farside Investors)

Bitcoin Gains Boost Crypto Stocks

It is not only spot Bitcoin ETFs performing well. On Oct. 14, publicly traded crypto-linked firms in the United States experienced gains after Bitcoin briefly reached $66,400, which was its highest price since July 30. 

CleanSpark, a Bitcoin mining company, was the day’s top performer after closing up 12.72% at $10.81 and rising another 1.72% after hours to $11. Coinbase followed closely, and gained 11.3% to close at $196.35, which was a seven-week high. An additional 1.71% increase in after-hours trading pushed the price up to $199.70. Other crypto miners also posted strong gains, with Iren rising 10.21%. TeraWulf and MARA Holdings rallied 6.65% and 5.6%, respectively.

Cleanspark stock price (Source: Google Finance)

Semler Scientific, a medical manufacturing firm that adopted MicroStrategy’s Bitcoin investment strategy, traded flat during the day but saw a 4.3% increase in after-hours trading. Digital payments firm Block gained 2.8%. MicroStrategy closed the day by dropping 5.1% to $201.67, though it saw a slight recovery of 1.65% after hours. Bitcoin miner Core Scientific also fell 1.9%, closing at $12.97 but recovering to $13.05 after hours.

These rallies and after-hours gains coincided with an increase in Bitcoin’s price over the past day, leading some analysts to speculate that “Uptober” may be underway. On-Chain College, a Bitcoin analyst, pointed out that Bitcoin cleared its 200-day moving average and short-term holder cost basis of $62,600. These are both key support levels signaling a potential price breakthrough. 

Historically, October has been a very strong month for Bitcoin. In fact, the crypto king saw price increases in October in nine of the last eleven years. Analysts are even speculating whether Bitcoin could actually reach its all-time high of $73,738 during the fourth quarter.

Bitcoin monthly returns (Source: Coinglass)

There are some factors like the 2024 halving event and the US election that could possibly contribute to a price surge. BTC is currently trading hands at around $65,687, according to CoinMarketCap data.

Shares in Japanese investment firm Metaplanet also surged by 15.7% on Oct. 15 after announcing its latest Bitcoin purchase by adding almost 107 Bitcoin to its holdings. This acquisition brings Metaplanet’s total Bitcoin stash to 855.5 BTC, which is valued at over $56.1 million. 

The firm revealed that it spent close to $6.7 million, or 1 billion yen, to buy 106.976 Bitcoin. It  paid an average of $62,520 per coin, which was 5.8% below Bitcoin’s market price of $66,200 at the time of the announcement.

Metaplanet’s latest Bitcoin purchase announcement (Source: Metaplanet)

Metaplanet traded at 1,105 yen, or $7.38, before the Tokyo Stock Exchange paused for lunch. This was a 15.7% increase from its Oct. 14 close. The company’s share price has soared by 480% since it unveiled its Bitcoin investment strategy in early April.

To date, Metaplanet invested $53.2 million to accumulate its 855 Bitcoin, and the firm has already seen a 5.4% gain on its Bitcoin investment. This latest purchase happened after four earlier acquisitions in October, which more than doubled Metaplanet’s Bitcoin holdings. On Oct. 11, the company bought 109 BTC, and on Oct. 7, it added 108.8 BTC. In early October, Metaplanet also bought 132 Bitcoin in two batches on Oct. 1 and 3, according to Bitcoin Treasuries data.

Metaplanet’s CEO, Simon Gerovich, admitted that his firm’s Bitcoin strategy is inspired by MicroStrategy and its executive chairman, Michael Saylor, whose company holds more than 252,000 Bitcoin that is worth $16.45 billion. In May, Metaplanet revealed plans to use various capital market instruments to increase its Bitcoin reserves, including taking out a $6.8 million loan in August from one of its shareholders to buy more Bitcoin. Metaplanet now ranks 23rd among public companies with the largest Bitcoin holdings, according to Bitcoin Treasuries.

Traders Anticipate Bitcoin Breakout

Bitcoin’s jump past $64,000 sparked speculation among crypto analysts that this could be the breakout moment many have been anticipating. Although regaining $64,000 doesn’t mark new highs, it has shifted market sentiment.

Dan Tapiero, the founder of 10T Holdings, commented that Bitcoin is “on the verge” of a major breakout. He pointed to $70,000 as the key level where “h6ll gonna break loose.” Tapiero believes that Bitcoin’s price is “just coiling,” a term used to describe a tightening price range that often signals an impending breakout. The last time Bitcoin crossed $70,000 was in June when it reached  $71,082.

Bitcoin’s gains have pushed October back into positive territory. Pseudonymous crypto trader Jelle is also optimistic about BTC’s next move, and stated that Bitcoin’s consolidation phase is likely ending. Jelle also shared that since the April Bitcoin halving, the crypto has been trading within a wide range of $58,000 to $72,000 and is now poised for new highs.

Meanwhile, trader Matthew Hyland referred to Bitcoin’s 10-day Simple Moving Average (SMA), which calculates the average price over the past 10 days. Hyland pointed out that whenever the 10-day SMA has turned upward in 2024, Bitcoin’s price followed suit 80%-90% of the time, further fueling optimism for an upcoming rally.