The Crypto Market Is Making Good Gains, with Bitcoin and Others in the Green over the Weekend

The rally comes as Spot Bitcoin exchange-traded funds (ETFs) are seeing record-breaking inflows over the last trading week.

The crypto market is making good gains, with Bitcoin and others in the green over the weekend. This comes as Spot Bitcoin exchange-traded funds (ETFs) are seeing record-breaking inflows over the last trading week.

From 14 to 18 October alone, these funds saw over US$2.1 billion (AU$3.1 billion) in combined inflows.

The chart below shows the strong trading week, which stands out from past performance. In addition to the increased inflows, the outflows from Grayscale’s GBTC (in red) are clearly visible up until April/May 2024, when they started to slow down.

Funds Inch Closer to 1 Million Bitcoin Combined

The strongest performer was once again BlackRock’s IBIT, hardly a surprise. IBIT added US$1.14 billion (AU$1.69 billion) to its holdings, more than half of all funds.

IBIT now holds 386,614.8 Bitcoin, around a third of all US funds combined – which hold a collective 958,450 BTC. That means all funds together hold 4.56% of the total 21 million BTC, a massive US$66.3 billion (AU$98.65 billion) in assets under management (AUM).

And while IBIT had the largest net inflows overall, Monday, 14 October, was the biggest day of the week for the funds as a group.

That day, Fidelity’s FBTC and Bitwise’s BITB both outperformed IBIT, pushing the total daily net inflows to US$555.9 million (AU$827 million) – that’s 8,300 Bitcoin!

It Took Bitcoin Ten Months to Do What Gold Did in 5 Years

Interestingly, the launch of these funds is probably one of the most successful in ETF history, if not the most successful.

To put things into perspective, let’s compare it to Gold ETFs, which Bitcoin ETFs are often likened to. It took Gold ETFs five years to break the US$20 billion-inflow mark.

The Bitcoin funds did that in just 10 months.

Now, keeping in mind that retail investors are just starting to re-enter the market, these inflows are largely driven by institutional demand – think US pension funds and financial advisors recommending the funds to their high-net-worth clients.

Related: Analysts Think Uptober Top in for Bitcoin, Memecoin Supercycle Next?

Chief market officer at crypto trading platform VALR, Ben Caselin, commented:

The above is the detailed content of The Crypto Market Is Making Good Gains, with Bitcoin and Others in the Green over the Weekend. For more information, please follow other related articles on the PHP Chinese website!