556 million dollars into the inflow of Bitcoin ETF signals is a major shift in investor sentiment

Spot Bitcoin Exchange Traded Funds (ETFs) in the United States were witness to their most important one-time inflow in more than 120 days on October 14.

With over half a billion dollars dollen in the funds, the price of Bitcoin (BTC) amounted to $ 67,800 – the highest in more than three months.

Nate Geraci, president of the ETF store, described the event as a landmark day for spot BTC ETFs, pointing out that they were approaching $ 20 billion to net inflows $ 20 billion over the past ten months.

‘Simple ridiculous and blow away each estimate before launching. It is not degen retail ‘$$$ imo. These are advisors and institutional investors who are slowly but surely assuming, ‘he wrote.

The Fidelity Wise Origin Bitcoin Fund led the battle with a $ 239.3 million inflow, the highest since June 4th.

Similarly, the Ark 21shares had Bitcoin ETF inflow of just under $ 70 million, while the Grayscale Bitcoin Trust scored its first $ 37.8 million inflow of October, the highest since early May.

Factors that drive the Bitcoin ETF boom

The recent boom in Bitcoin ETF inflow is attributed to a confluence of factors, creating the creation of what some experts call a ‘perfect storm’ for crypto investments in general.

For example, Chris Aruliah, head of the Crypto Exchange Cryto Exchange institution, points to the upcoming US election as a major driver, and adds: ‘While we are closer to the US election in November, investors may have more confidence to place their bets that we will see the resumption of the BTC’s bull.

Similarly, Cryptocurrency Exchange KaCoin managing director Alicia Kao told Cointelegraph that the growing macro economic optimism is another important factor that drives this tendency.

According to her, the economic data released by various US agencies has alleviated concerns about a possible recession, with the Federal Reserve already gradually lowering interest rates.

Furthermore, she noted that participating in hedge funds in digital assets is gradually increasing, fueled by improved regulatory clarity and the introduction of Spot Crypto ETFs worldwide.

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“Almost half (47%) of traditional hedge funds now have exposure to digital assets, a significant 29% increase in 2023 and 37% in 2022. establishing the establishment of the establishment of the institution and the establishment of the establishment of the setting of the institution and the establishment of the establishment of the institution and the establishment of the establishment of the institution and the establishment of the establishment of the setting of the setting and setting up the setting of the setting of the asset.

Institutional adoption question to ETFs

Although retail demand is undoubtedly a significant factor, the role of institutional investors in the driving force of this record inflow cannot be overstated.

Mithil Thakore, CEO and co-founder of Bitcoin Trading Protocol Velar, believes that institutions are in the management seat and that a large part of the BTC is currently being traced by ETFs. He added:

‘We are now approaching something like $ 20 billion to BTC inflows, a figure that took it for over four years to achieve. Given the properties that have made Bitcoin the best performance of the last decade, it’s no surprise that the ETF’s demand was so strong. ‘

Similarly, VALR Chief Market Officer Ben Caselin believes that the recent boom can be attributed to US Bitcoin ETFs to Bitcoin’s resilience in both low and high interest environments.

Furthermore, he believes that institutional investors are increasingly accessing this space and thus drive inflows.

“The participation of financial advisors, pension funds, etc. is crucial for bitcoin to achieve new price heights and potentially exceed gold as a prominent asset class showing the disconnection of traditional markets,” Caselin said.

Kao said institutional acceptance of bitcoin ETFs increased significantly by 27% during the second quarter of 2024, with 262 new firms entering US location Bitcoin ETF market.

She noted that the total number of professional firms holding Bitcoin ETFs reached more than a thousand by 30 June 2024. Despite these striking numbers, Kao said “retail investors remain the primary holders of Bitcoin ETFs. Institutional investors manage only 21.15% of the AUM, a modest increase of 18.7% in the first quarter of 2024.”

Bitcoin ETFs versus traditional assets

The success of Bitcoin -TFs, especially compared to traditional asset classes such as gold, was nothing less than remarkable. Eric Balchunas, senior ETF analyst at Bloomberg, noted that the asset has peaked five times since the launch of BTC funds in January.

Although gold has hit record heights 30 times this year, Gold ETFs saw only $ 1.4 billion in net inflow compared to more than $ 20 billion for Bitcoin ETFs.

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Caselin believes that although gold with a millennia-old history boasts a legal value of value, the modern digital era investors of bitcoin and all the unique benefits it bears:

“As a technology-driven asset, Bitcoin’s 15-year-old evolution in line with contemporary financial trends, and positions it to attract faster capital than traditional assets such as gold.”

Arulian, on the other hand, believes that BTC has established itself as a completely new alternative asset class that is clearly different from precious metals – but offers many of the same features.

Tristan Dickinson, chief marketing officer of Bitcoin Docking Layer Exsat Network, said Bitcoin ETFs are already the most successful ETF – crypto or otherwise – in American history, and that it is on track to exceed gold ETFs. He attributes this increase to Bitcoin’s unique features, initial fixed performance, high volatility and significant potential for short -term gains.