FameEX Hot Topics | European Investors Invest Record $105B in US Bitcoin ETFs

Despite record European inflows, Bitcoin has struggled to break above the $70,000 mark since July. European investors have set a new record by investing over $105 billion in U.S. spot Bitcoin exchange-traded funds (ETFs) year-to-date (YTD), marking an all-time high. This trend highlights growing global interest in Bitcoin ETFs, even as the cryptocurrency's price remains below the psychological barrier.

Eric Balchunas, a senior ETF analyst at Bloomberg, shared the record European inflows in an October 21 post on X, stating, “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.” This indicates that not only European but also Asian investors are increasingly funneling capital into U.S. Bitcoin ETFs, seeking better returns.

The growing influx of capital could potentially drive Bitcoin to new highs, similar to the trend seen earlier this year. In February 2024, European and other global inflows into U.S. Bitcoin ETFs contributed about 75% of the new capital that helped Bitcoin surge past $50,000. However, despite reaching record investment levels and a robust hashrate, Bitcoin's price has remained below $70,000, reflecting ongoing market consolidation.

Recent milestones suggest sustained interest in Bitcoin. On October 14, U.S. Bitcoin ETFs collectively bought $555 million worth of Bitcoin, resulting in a 5% daily price increase, from $62,450 to a peak of $66,479. By October 17, these ETFs achieved a significant milestone, surpassing $20 billion in total net flows—an achievement that took gold-based ETFs over five years to reach.

Further bolstering Bitcoin’s network, its hashrate reached an all-time high on October 21, indicating enhanced security and rising mining costs. Data from Dune shows that Bitcoin ETFs now hold $66.3 billion in cumulative onchain Bitcoin, which accounts for 4.9% of the current circulating supply. These developments underscore the growing role of Bitcoin ETFs in global markets, even as Bitcoin’s price continues to consolidate 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.