Spot Bitcoin (BTC) Exchange-Traded Funds (ETFs) Regain Momentum, Marked by Unprecedented Inflows

After a period of uncertainty, spot Bitcoin [BTC] exchange-traded funds (ETFs) appear to be regaining momentum, marked by unprecedented inflows.

Bitcoin exchange-traded funds (ETFs) saw another week of inflows, albeit at a slower pace, as investors continue to show interest in the flagship cryptocurrency.

According to data from Farside Investors on 30th September, the total inflows into Bitcoin ETFs stood at $494.4 million.

The week saw varying fortunes for different ETFs. While BlackRock’s iShares Bitcoin Trust (IBIT) usually leads in inflows, this time, the ARK 21Shares Bitcoin ETF (ARKB) took the spotlight with an impressive $203.1 million in new investments.

This brought ARKB's total assets under management (AUM) to over $1.1 billion, making it the second-largest Bitcoin ETF.

Meanwhile, Fidelity’s FBTC garnered $123.6 million, and IBIT attracted $110.8 million. Other ETFs also experienced substantial inflows, including Grayscale’s GBTC, which surprisingly reversed its usual trend of outflows with a notable influx of $26.2 million.

As Bitcoin’s price recovered during the week, clocking in at $65,000 on 27th September, and considering the ETF inflows, it appeared that investors were showing a preference for broad-based exposure to Bitcoin through ETFs, rather than direct ownership of the cryptocurrency.

However, the latest data showed a slight decline in Bitcoin’s price, with the coin trading at $63,602 on 30th September, as noted by CoinMarketCap. This indicated a 2.92% decrease over the past 24 hours, highlighting the volatile nature of the cryptocurrency market.

In other news, Bitcoin Whale on X highlighted the former Chinese finance minister’s stance on Bitcoin ETFs,

“Spot #Bitcoin ETFs bought 17,009 $BTC this week.”

Interestingly, they also noted that BTC Miners only created 2,250 more Bitcoin this week, adding,

“Demand is exceeding supply.”

In related news, former Chinese finance minister Lou Jiwei highlighted the need for careful examination of crypto advancements during the 2024 Tsinghua Wudaokou Chief Economists Forum in Beijing.

He pointed out the risks to financial stability, such as volatility and money laundering, while noting the US’s changing stance, especially after the SEC approved spot Bitcoin ETFs.

“We also need to study the latest international changes and policy adjustments because they are crucial for the development of the digital economy,” he noted.

As cryptocurrency adoption continues to rise, and the sector evolves, it will be interesting to observe how these developments unfold and what implications they hold for the future.

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