- Bitcoin ETFs see record inflows, signaling growing investor demand amid market bullishness.
- Former Chinese finance minister warns of cryptocurrency risks, urging careful examination of advancements.
As a seasoned analyst with over two decades of experience in financial markets, I’ve seen my fair share of market ebbs and flows. The recent surge in inflows into Bitcoin ETFs is an interesting development that catches my attention. While it’s too early to predict the long-term implications, the growing investor demand is a clear sign of increasing confidence in this digital asset class.
After a spell of doubt, the interest in Bitcoin [BTC] exchange-traded funds (ETFs) seems to be picking up speed again, as indicated by unusual increases in investment.
Bitcoin ETF update
By the 27th of September, the most recent figures from Farside Investors showed that Bitcoin ETFs had received a total of $494.4 million in investments. The financial markets were closed on both the 28th and 29th of September, so no additional inflows occurred during that weekend.
In a striking shift, instead of BlackRock’s iShares Bitcoin Trust (IBIT) being the usual frontrunner for investments, this time around, the ARK 21Shares Bitcoin ETF (ARKB) garnered significant attention with an impressive $203.1 million pouring in as new investments.
Right on its heels were Fidelity’s FBTC, raising $123.6 million, and IBIT with a collection of $110.8 million.
Additionally, other Exchange-Traded Funds (ETFs) saw significant investments, among them being Grayscale’s GBTC. Interestingly, this fund, typically associated with outflows, experienced an unexpected surge, attracting approximately $26.2 million in new investments.
Bitcoin’s price performance
Regular contributions to Bitcoin ETFs indicate an increasing interest from investors, as Bitcoin’s worth has rebounded within a thriving market uptrend.
In the past few days, Bitcoin struggled to exceed the $60,000 threshold, yet it managed to climb up to $65,000 by the 27th of September.
On the 30th of September, according to CoinMarketCap, Bitcoin was priced at $63,602, showing a minor decrease of approximately 2.92% in the last day.
The ups and downs in pricing clearly demonstrate the unpredictable characteristics of the cryptocurrency market, despite the growing enthusiasm for Bitcoin investment opportunities.
What’s more to it?
Amidst this news, there was other news surrounding Bitcoin ETF as highlighted by Bitcoin Whale on X,
“Spot #Bitcoin ETFs bought 17,009 $BTC this week.”
However, they also noted that BTC Miners only created 2,250 more Bitcoin this week and highlighted,
“Demand is exceeding supply.”
Former Chinese finance minister against Bitcoin ETF?
As a keen crypto investor, I find myself closely following the advice of esteemed figures like Lou Jiwei, who recently emphasized the importance of examining the latest crypto advancements with caution at the 2024 Tsinghua Wudaokou Chief Economists Forum in Beijing.
He warned about the risks to financial stability, including volatility and money laundering, while noting the US’s changing stance, particularly after the SEC approved spot Bitcoin ETFs.
He said,
Additionally, it’s essential that we delve into the most recent global shifts and modifications in policies. These alterations play a pivotal role in shaping the growth of our digital economy.
As more people start using cryptocurrencies and the industry keeps growing, it’s going to be fascinating to see where this journey takes us and what long-term effects we might experience.
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2024-09-30 22:16