- Bitcoin ETFs recorded the most inflows in nearly five months.
- ETFs could potentially overtake Satoshi's stake by December.
Bitcoin [BTC] It continued to exceed expectations with its staggering price rise and record-breaking exchange-traded fund (ETF) inflows.
On October 29, BTC reached a peak of over $73,000. Additionally, Spot BTC ETF recorded net inflows of $870 million data From SoSo Value.
This is the highest single-day net inflow since the beginning of June.
It is worth noting that generally, such volumes are expected to increase during recessions as investors “buy the dip.”
Ergo, the question: Why is inflows increasing along with the rising BTC price?
Why are Bitcoin ETF inflows increasing?
Interestingly, Eric Balchunas, senior ETF analyst at Bloomberg, also found this recent increase “a little strange.” Post On X. However, he Explained:
“Sometimes the volume can increase when there's FOMO-ing frenzy.”
The analyst further commented,
“Look for (more) big flows this week.”
He said trading volume for the iShares Bitcoin Trust ($IBIT) rose to $3.3 billion, the largest figure in six months. However, this product was not the only product that saw an increase in trading volume.
Although it was ahead by a significant margin, all major Bitcoin ETFs experienced increased activity, showing that FOMO was definitely at play.
ETFs are closing in on Satoshi
Notably, inflows weren't the only area where ETFs seemed to be thriving. In another post, Balchunas Thrown light on A major milestone is looming for Bitcoin ETFs as the total BTC held by US spot ETFs is set to surpass 1 million BTC by next Wednesday.
Furthermore, it could surpass the holdings of Bitcoin's creator, Satoshi Nakamoto, by mid-December.
He said the ETFs are receiving around 17,000 BTC weekly, putting them close to holding more Bitcoin than the coveted Satoshi wallet – a historic feat for this asset class.
Still, Balchunas cautioned that this rapid accumulation is not without potential disruption, he said,
“Anything can happen, for example a violent selloff and all this is delayed although still inevitable.”
He added that, under certain conditions, including a price increase or Donald Trump taking the Oval Office, FOMO could accelerate the timeline even further.
Institutional demand is continuously increasing
Meanwhile, acceptance of Bitcoin ETFs has expanded among every type of institutional investor. Balchunas noted Recently, Emory University became the first endowment fund to report a Bitcoin ETF position.
University reveals ownership of shares worth more than $15 million in Grayscale Bitcoin Mini Trust filed With the US Securities and Exchange Commission [SEC],
This development indicates that Bitcoin ETFs are now represented across a broad spectrum of institutional categories, including banks, hedge funds, insurance companies, advisors, pensions, venture capital and family offices.
read bitcoin [BTC] Price Forecast 2024-2025
For an ETF market segment less than a year old, this level of institutional adoption underscores Bitcoin's maturing role in traditional finance and its appeal among professional investors.