FameEX Hot Topics | European Investors Pour Record $105B into US Bitcoin ETFs

Despite record inflows from European investors, Bitcoin has struggled to surpass the $70,000 mark since July. European investors set a new milestone by allocating over $105 billion to U.S. spot Bitcoin exchange-traded funds (ETFs) year-to-date (YTD), marking an all-time high. This trend reflects a growing global interest in Bitcoin ETFs, even as the cryptocurrency’s price continues to hover below this key psychological level.

Eric Balchunas, a senior ETF analyst at Bloomberg, highlighted the record European investments in an October 21 post on X. He noted, “Flows into US-focused ETFs by locals in Europe is now at a record $105b YTD. And why not? $SPY is up 24% vs 10% for Europe. Asia also funneling record flows.” His remarks suggest that Asian investors are also increasingly investing in U.S. Bitcoin ETFs, looking for higher returns compared to domestic markets.

The increased inflow of capital could potentially drive Bitcoin to new highs, similar to earlier trends this year. In February 2024, European and other global investments into U.S. Bitcoin ETFs accounted for about 75% of the new capital that helped push Bitcoin past the $50,000 mark. Despite these record investment levels and robust network activity, Bitcoin's price has not managed to break past $70,000, indicating ongoing market consolidation.

Recent developments indicate a sustained interest in Bitcoin. On October 14, U.S. Bitcoin ETFs collectively acquired $555 million worth of Bitcoin, leading to a 5% daily price surge, from $62,450 to a peak of $66,479. By October 17, these ETFs surpassed $20 billion in total net flows, a notable milestone that took gold-based ETFs more than five years to achieve.

Additionally, Bitcoin’s hashrate reached an all-time high on October 21, signifying enhanced network security and rising mining costs. Data from Dune reveals that Bitcoin ETFs now hold $66.3 billion in cumulative onchain Bitcoin, representing 4.9% of the current circulating supply. These trends highlight the growing significance of Bitcoin ETFs in global markets, even as Bitcoin’s price remains below $70,000.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.