US Spot Bitcoin ETFs Reach $21 Billion in Net Inflows

Highlights:

• Spot Bitcoin ETFs reached $21 billion in inflows, showcasing strong demand.
• ARK Invest’s ARKB led inflows with nearly $110 million, followed by BlackRock’s IBIT at over $70 million.
• Bitcoin ETFs are projected to surpass gold ETF inflows in just two years.

On October 18, U.S. spot Bitcoin (BTC) exchange-traded funds (ETFs) achieved $21 billion in total net inflows, highlighting strong investor demand for these funds. Data from Farside Investors indicates that these ETFs collectively attracted over $2 billion this week, marking their sixth consecutive day of gains.

Spot BTC ETFs saw a daily net inflow of $273.7 on Friday. ARK Invest’s ARKB led the group with nearly $109.9 million, while BlackRock’s IBIT attracted over $70.4 million in inflows. Other Bitcoin entities that generated profits include Bitwise’s BITB with $36 million, VanEck’s HODL with $33.3 million, Fidelity Bitcoin ETF (FBTC) with $18 million, and Invesco’s BTCO with $16.1 million. IBIT and ARKB emerged as the top-performing Bitcoin ETFs this week. ARKB saw inflows exceed $100 million on both Thursday and Friday.

IBIT generated half of the group’s total inflows. As of October 18, its net inflows have exceeded $23 billion, firmly establishing it as the leading Bitcoin ETF globally. Thanks to Friday’s favorable performance, Bitcoin ETFs recorded their first week without any negative inflows. Even Grayscale’s GBTC, which has a history of outflows, reversed its trend by attracting over $91 million in net inflows.

Bitcoin ETFs to Overtake Gold ETF Inflows in Just 2 Years

Launched in 2024, Bitcoin ETFs have grown rapidly. It took gold ETFs much longer to achieve similar success. Gold ETFs, which started in 2004, needed five years to reach $20 billion. This contrast shows the cryptocurrency market’s maturation and increasing credibility with traditional investors. Financial analysts remain optimistic about the rapid growth of Bitcoin ETFs, predicting they could surpass gold ETFs. 

President of the ETF Store Nate Geraci believes that the current momentum of Bitcoin spot ETFs indicates they will soon surpass gold ETFs in total inflows. He predicts Bitcoin ETFs will surpass gold inflows in two years. Currently, gold ETF inflows are around $50 billion, peaking at over $75 billion. He attributes the rapid growth of Bitcoin ETFs to increased interest from major financial institutions entering the crypto market.

Here’s a chart for you…

Cumulative net flows into physical gold ETFs vs spot bitcoin ETFs.

Gold ETFs launched in 2004.

Bitcoin ETFs in 2024.

20yr head start for gold ETFs, but wouldn’t be surprised to see bitcoin ETFs surpass them in next 2yrs.

via @Todd_Sohn pic.twitter.com/1e6gOMb3VZ

— Nate Geraci (@NateGeraci) October 18, 2024

SEC Approves Options Trading for Spot BTC ETFs

On Friday, the SEC approved proposals from NYSE and CBOE to list options for spot Bitcoin ETFs. The launch date is still unknown. ETF experts believe this approval will broaden market access to crypto-related financial products on major U.S. exchanges. 

Nate Geraci predicts that options trading on spot Bitcoin ETFs will boost liquidity. He believes it will attract more participants to the market and strengthen the entire ecosystem. Geraci emphasizes that options trading is crucial for institutional investors, as it aids in hedging and executing complex strategies, particularly with a volatile asset like Bitcoin.

Additionally, analysts at Standard Chartered anticipate that Bitcoin may soon return to its all-time high of $73,800. This forecast is particularly significant given the upcoming political and economic events, including the U.S. presidential election. The potential re-election of Donald Trump, who has a positive view of cryptocurrencies, may foster a more favorable environment for Bitcoin. As of the latest update, the BTC price is $68,344, reflecting a 0.47% increase on Saturday.