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Bitcoin has been the subject of media attention lately, and not just because of its rising prices More than $65,000 But also due to unusual inflows into spot Bitcoin ETFs.
These flows, according to Persian investorsreached an impressive amount of $365 million as of September 26, 2024, demonstrating the growing institutional interest in the cryptocurrency market.
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Record inflows amid market optimism
The month’s largest daily inflow came from BlackRock’s Bitcoin ETF, which rose by about $184 million on September 25, 2024.
This rise coincides with withdrawals from several other ETFs, indicating a significant change in the view of institutional investors. Despite having only $2.1 million worth of inflows into other platforms like the Bitwise Bitcoin ETF, BlackRock’s performance is noteworthy and serves as a ray of hope amid market volatility.
Over the past five days, there has been a positive cumulative inflow of approximately $497 million into US spot Bitcoin ETFs. The Federal Reserve’s recent move to cut interest rates by 50 basis points is partly to blame for this increase because it has prompted investors to look to other assets like Bitcoin.
The overall digital asset investment products also saw inflows for the second week in a row, totaling approximately $321 million, with the primary focus being Bitcoin, accounting for approximately $284 million of this total.
Institutional trust and financial aspects
The current surge of funds in Bitcoin ETFs indicates a larger trend where institutional investors are starting to look at Bitcoin as a tactical asset. The positive outlook is further supported by economic factors such as the dovish stance taken by the Federal Reserve, which has calmed investors about possible economic stability.
CryptoQuant CEO Ki Young Joo emphasized that strengthening the US’s position as a leader in the cryptocurrency space depends on the growing demand for spot Bitcoin ETFs.
The United States regains its dominance in #Bitcoin Collectibles. Its percentage is higher compared to other countries, driven by immediate demand for ETFs. Only known entities are included. pic.twitter.com/a9XOb5134E
– Ki Young Ju (@ki_young_ju) September 26, 2024
It is interesting to note that while BlackRock’s ETF performed well, other ETFs, including the Ark 21Shares Bitcoin ETF and Fidelity’s Wise Bitcoin Origin Fund, saw significant withdrawals of $33.2 million and $47.4 million, respectively.
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The future Bitcoin investment landscape
As Bitcoin’s value and popularity continues to grow, analysts are carefully watching how these inflows impact future price movements.
Over 90% of Bitcoin holders are currently profiting from this price rise, raising concerns about a potential sell-off as investors look to realize gains. Based on past patterns, significant price adjustments can be made if a significant portion of shareholders show gains.
To make matters more complicated, there are about $5.8 billion worth of options contracts that are about to expire. Traders will be watching the $66,000 level and other important resistance levels closely, as a break above this level could spark additional positive momentum.
Featured image from WIRED, chart from TradingView