US spot Bitcoin ETFs have recorded over $2 billion in inflows over the past week. This surge indicates renewed investor interest in cryptocurrencies.
Inflows Growth and Market Significance
According to reports, twelve US-based spot Bitcoin ETFs have reached a historic high in total net asset value, setting a new record since their launch in January. The total holdings now exceed $66.1 billion, surpassing the previous peak of $62.6 billion. These assets represent 4.89% of Bitcoin’s total market capitalization.
Record Values and Bitcoin Price Impact
The funds experienced their strongest trading week for inflows since March, drawing in over $2.1 billion in new capital. This marks the fourth-largest weekly inflow ever recorded. A contributing factor to this surge has been the recent rise in Bitcoin's price. Since October 10, Bitcoin's value has climbed approximately 12%, boosting the overall worth of the ETFs. As a result, the total value of Bitcoin held by these funds has increased by roughly $11 billion. BlackRock’s IBIT ETF led the growth, seeing its assets swell by over $3 billion.
Regulatory Approvals and Their Impact
Cumulative inflows for Bitcoin ETFs surpassed $20 billion, described by Bloomberg as 'the most challenging' milestone in the ETF industry. Additionally, the SEC recently granted 'accelerated approval' for options trading on several Bitcoin ETFs. This offers new growth possibilities and could attract more market participants.
The inflow surge into Bitcoin ETFs highlights growing investor confidence in Bitcoin as a long-term asset, and regulatory changes may drive further maturation of the cryptocurrency market.
