Bitcoin ETFs: A record influx but a muted impact

The Bitcoin ETFs recently crossed the threshold of 20 billion dollars in capital in the United States, and this momentum shows no signs of slowing down.

Bitcoin ETFs have recently crossed the 20 billion dollar threshold in capital within the United States, and this momentum continues unabated. From one continent to another, investors are flocking to these financial instruments, enticed by the promise of swift gains. Europe is not lagging behind, with over 105 billion dollars being invested in Bitcoin ETFs in 2024, setting a new record. But then, why is the price of BTC struggling to breach the symbolic barrier of 70,000 dollars?

Bitcoin ETFs: A record influx but a muted impact

European investors have poured over 105 billion dollars into Bitcoin ETFs in the United States this year, smashing all previous records. This wave of investments is not limited to Europe; Asian flows are also surging.

Despite this enthusiasm, the price of Bitcoin has remained stuck below 70,000 dollars since July.

A Bloomberg analyst, Eric Balchunas, noted that these massive inflows do not have an immediate effect on the market as some traders use ETFs as “exit liquidity.”

Stagnation of BTC price despite records

The price of Bitcoin, though bolstered by ETF inflows, has failed to cross the make-or-break threshold of 69,500 dollars, a crucial signal for an impending rally. This situation persists despite six consecutive days of net positive inflows into ETFs, peaking at 555 million dollars on October 14, which only triggered a transient 5% increase.

According to Bitfinex analysts, the delay in the impact of ETF inflows can be attributed to the sequence of transactions in the market. The strong initial demand is typically followed by a correction as the momentum fizzles out.

Hence, market participants should exercise caution as the rise of Bitcoin ETFs could soon dictate market flows. Heavyweights like BlackRock and Grayscale have certainly not exhausted their options.

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La révolution blockchain et crypto est en marche ! Et le jour où les impacts se feront ressentir sur l’économie la plus vulnérable de ce Monde, contre toute espérance, je dirai que j’y étais pour quelque chose, à minima. Mais en attendant, restez connectés les amis, car ici, on ne lâche rien !