One of the main factors behind the recent rise in the price of bitcoin (BTC) is the outstanding performance of ETFs of this digital currency in the United States.
Yesterday, The funds reported net inflows totaling $555 millionthe highest volume recorded since June 4.
This injection of capital led to the price of bitcoin going from $62,300 to $66,400 in just one day, although today the digital currency has fallen slightly to $65,373, as the following graph shows. TradingView.
Capital was concentrated in 10 of the 11 bitcoin ETFs, which reported no net outflows. Fidelity’s fund, the Wise Origin Bitcoin Fund (FBTC), led the inflow with $239 millionclosely followed by the Bitwise Bitcoin ETF (BITB), which attracted $100 million, according to SosoValue data.
For its part, the iShares Bitcoin Trust (IBIT), managed by BlackRock, which is the largest bitcoin fund in terms of net assets, recorded $79 million in inflows. Another notable fund, the ARK 21Shares Bitcoin ETF (ARKB), attracted nearly $70 million.
Finally, Grayscale’s Grayscale Bitcoin Trust (GBTC) closed the day with more than $37 million in net inflows.
A wave of transactions drives the market
The impact of these million-dollar inflows was not only reflected in bitcoin prices, but also in transaction volume.
On Monday, The 12 bitcoin spot exchange-traded funds recorded a total of $2.61 billion in transactionsthe highest level since August 23.
Of this volume, the IBIT fund represented $1.67 billion, consolidating its position as the leader in this segment. Since its launch in January, this fund has accumulated net inflows totaling $19.36 billion.
These moves have been key in driving up the price of bitcoin, as spot ETF managers are required to buy and hold bitcoin in their treasuries to back their actions. As demand for these funds increases, managers must acquire more bitcoin, which reduces the available supply in the market and generates upward pressure on its price.
Bitcoin surpasses gold in attracting capital
The rise of bitcoin ETFs has also sparked comparisons with other traditional assets, such as gold.
Eric Balchunas, ETF specialist, pointed out that even though gold has hit all-time highs 30x to bitcoin’s 5x (since the launch of bitcoin ETFs), interest in bitcoin exchange-traded funds has far outpaced bitcoin money flow. ETFs based on the precious metal.
Based on recorded net flows, bitcoin ETFs have raised $19 billion compared to $1.4 billion for gold ETFs, meaning bitcoin has attracted almost 14 times more capital.
For his part, Nate Geraci, president of ETF Store, qualified the performance of bitcoin ETFs as “monstrous.”
According to Geraci, In the last 10 months, these funds approach $20 billion in accumulated investmentsa figure that “exceeds any pre-launch estimate.”
Furthermore, he highlighted that This strong demand does not come exclusively from small investorsbut is being driven by large institutional players and financial advisors, who are strategically integrating bitcoin into their portfolios.
In short, the million-dollar inflows into bitcoin ETFs are not only driving the price of the currency, but also marking a milestone in its adoption within traditional financial markets, where more and more institutional investors are betting on the future of this digital asset. .
