Bitcoin exchange-traded funds (ETFs) have reached a significant milestone, accumulating $20 billion since their launch.
According to the SosoValue datathe total accumulated net inflow is $20.19 billion as of the close of October 16. This is a milestone achieved in less than a year since the launch of these products, which was in January.
The cumulative measure, generally, reflects how much additional money, in total, ETFs have moved toward purchasing bitcoin (BTC) since they came into existence.
Bloomberg Senior ETF Analyst Eric Balchunas express about the milestone of bitcoin ETFs that managed to surpass the most important figure and the most difficult metric to grow in the world of ETFs.
To put it in context, it took about 5 years for gold ETFs to reach the same figure. Total accumulated assets now amount to $65 billion, also a peak level, Balchunas recalls.
The arrival at this mark was consolidated after a daily net inflow of $458 million on October 16. According to SosoValue, 8 of the 12 bitcoin ETFs recorded inflows yesterdaywhile the other four reported neither capital inflows nor outflows.
The mobilization was led by the BlackRock ETF, which recorded receipts of 393.4 million dollars. Other ETFs such as Fidelity, ARK & 21Shares, Bitwise, VanEck, Valkyrie, Invesco and Franklin Templeton also contributed inflows of 14.8 million; 11.5 million; 12.9 million; 5.7 million; 1.9 million; 6.4 million and 11.7 million dollars, respectively.
This financial movement is not isolated. Bitcoin ETFs have racked up four consecutive days of capital inflows exceeding $250 million. In this period, More than $1.637 million have entered BTC ETFs.
Bitcoin firm above $67,000
As a direct consequence of this interest in ETFs, bitcoin price has remained firm around $67,000, reaching peaks of $68,000 in the last day. This week, “monstrous” inflows of more than $550 million have been seen into these funds, which significantly boosted the price of BTC, as reported by CriptoNoticias.
It must be remembered that ETFs have a direct influence on price behavior since each time more money is invested in these products, essentially more BTC is being purchasedbecause ETFs are designed to track the price of the digital currency. All of this generates buying pressure and is usually a trigger for the asset’s price.
As of October 16, bitcoin ETFs handled nearly 5% of the digital currency’s total supply, managing approximately $64.4 billion in BTCequivalent to about 950,900 coins, according to the calculation from investor Shaun Edmoson. This volume marks 4.82% of the total bitcoins in existence.
The influence of ETFs on the bitcoin market not only demonstrates growing institutional interest in the digital currency, but also suggests greater maturity and acceptance of BTC as an asset class within traditional financial markets, fueling its demand, which It’s still in a “very early stage,” as Robert Mitchnick, head of digital assets at BlackRock, put it.
