Bitcoin has recently become the subject of media attention, not only due to the boost in its price over $65,000 but also due to extraordinary inflows into Bitcoin spot ETFs.

These inflows, according to Investors from Farsidereached a remarkable $365 million as of September 26, 2024, indicating growing institutional interest in the cryptocurrency market.

Record inflows amid market optimism

The largest daily flow this month came from BlackRock’s Bitcoin ETF, which rose by approximately $184 million on September 25, 2024.

This jump coincides with the withdrawal of many other ETFs, indicating a significant change in the views of institutional investors. While only $2.1 million flowed into other platforms like the Bitwise Bitcoin ETF, BlackRock’s performance is noteworthy and a ray of hope amid market volatility.

Over the last five days, there has been a positive cumulative inflow of approximately $497 million into US Bitcoin spot ETFs. The Federal Reserve’s recent move to cut interest rates by 50 basis points is partly the reason for this boost, as it has led investors to look to other assets such as Bitcoin.

Overall, digital asset investment products also recorded a second straight week of inflows totaling approximately $321 million, with BTC being the main focus, accounting for approximately $284 million of that total.

Institutional trust and financial aspects

The current influx of money into Bitcoin ETFs is indicative of a larger trend in which institutional investors are beginning to view Bitcoin as a tactical asset. The positive outlook is further supported by economic factors, such as the dovish stance of the Federal Reserve, which has reassured investors about the likely economic stability.

CryptoQuant CEO Ki Young Ju emphasized that strengthening the United States’ position as a pioneer in the cryptocurrency space depends on the growing demand for spot Bitcoin ETFs.

🇺🇸The USA regains dominance in… #Bitcoin farms. Its share of other countries is growing, driven by demand for ETFs in the spot market. Only known entities are included. pic.twitter.com/a9XOb5134E

— Ki Young Ju (@ki_young_ju) September 26, 2024

It’s worth noting that while the BlackRock ETF has performed well, other ETFs, including the Ark 21Shares Bitcoin ETF and Fidelity’s Wise Bitcoin Origin Fund, have seen vast drawdowns of $33.2 million and $47.4 million, respectively.

The investment landscape for Bitcoin in the future

As Bitcoin continues to grow in value and popularity, analysts are closely watching how these inflows could impact future price movements.

More than 90% of Bitcoin holders are currently profiting from this price boost, raising concerns about potential sell-offs as investors look to take profits. Based on past patterns, if a significant portion of bondholders show gains, there could be significant price corrections.

Further complicating matters is the fact that approximately $5.8 billion in options contracts are set to expire soon. Traders will be keeping a close eye on $66,000 and other vital resistance levels, as a break through this level could trigger additional positive momentum.

Featured image from WIRED, chart from TradingView