European investors have allocated record amounts of money to US spot Bitcoin exchange traded funds (ETFs).
Europeans have invested more than $105 billion (year-to-date) into Bitcoin (BTC) ETFs, setting a new record high.
The European ETF flow record was shared by Eric Balciunas, senior ETF analyst at Bloomberg. I wrote In the October 21st X post:
“Local European inflows into US-focused ETFs are now at a record $105 billion year-to-date. Why not? $SPY up 24% However, sales rose 10% in Europe. Asia is also attracting vinyl flows.
International ETFs flow to the US. Source: Eric Balchunas
Increased ETF inflows could push Bitcoin to new all-time highs from its current club walk. Flows into US Bitcoin ETFs accounted for about 75% of the new funds that helped Bitcoin surpass $50,000 in February 2024.
BTC/USD, monthly chart. Source: TradingView
Despite record inflows from Europe, Bitcoin has not been able to recover the psychological level above $70,000 (last visited on July 29th, Bitstamp) data is shown.
Related: Bitcoin hashrate reaches all-time high, network security strengthens
Despite ETF records and all-time high hashrate, Bitcoin price stalls below $70,000
Last week was a record milestone for Bitcoin and Bitcoin-based ETFs, and it wasn’t just the inflows from Europe.
Early today, October 21st, Bitcoin's hash rate (the total computing power that secures the network) reached an all-time high, indicating increased network security and an increase in BTC mining costs.
As of Oct. 17, total net flows for U.S. Bitcoin ETFs exceeded $20 billion, which Balchunas said is “the most difficult metric to grow” for ETFs. It took more than five years for gold-based ETFs to pass this same milestone.
Despite the ETF's multiple milestones, Bitcoin's price has remained below $69,500 since July. 29.
BTC/USD, 1 week chart. Source: TradingView
Bitfinex analysts believe this is an effect of delayed ETF inflows, which could take several days to impact spot BTC prices.
The high ask order book suggests that crypto traders are using ETF flows as exit liquidity for trades, analysts told Cointelegraph.
“Typically, this means that large ETF inflows have a muted effect for a few days, then the market reverses and declines as spot market buyers become less aggressive.
Related: Tether’s USDT hits $120 billion market cap, “Uptober” signal flashes
Bitcoin ETF is on a 6-day winning streak
Bitcoin ETFs have recorded six consecutive days of net inflows since August 18, according to data from Pharcyde Investors.
Bitcoin ETF Flow (USD, million). Source: Farside Investors
On October 14th, US Bitcoin ETFs purchased a total of $555 million worth of Bitcoin, resulting in a 5% daily increase in Bitcoin price from $62,450 to a daily high of $66,479. It rose to
Bitcoin ETF dashboard. Source: Dune
Bitcoin ETFs have cumulative on-chain Bitcoin holdings of more than $66.3 billion and account for 4.9% of the current Bitcoin circulating supply, Dune said. data is shown.
magazine: Bitcoin $233,000 prediction, SEC X account hacker arrested, and more: Hodler's Digest, October 13-19
