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Bitcoin ETFs surpass $2.1b weekly inflows, whale accumulation mirrors 2020 rally

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Spot Bitcoin exchange-traded fund inflows shot up more than 580% this week, as one analyst pointed out that whales were loading up on Bitcoin at a pace akin to the lead-up to the 2020 rally.

Over the past week, inflows into the 12 spot Bitcoin ETFs reached $2.13 billion, following six consecutive days of positive inflows. This marks the first time weekly inflows into Bitcoin ETFs have surpassed the $2 billion mark since March 2024.

Total net inflows across Bitcoin ETFs have hit a record $20.94 billion. That’s a milestone that took gold ETFs years to achieve, according to Bloomberg’s Eric Balchunas. Bitcoin products took less than a year.

Weekly inflows hit their high on Oct. 14, with $555.86 million flowing into the ETFs, but by Oct. 18, the pace slowed down, dipping to $273.71 million, according to SoSoValue data.

None of the funds saw negative flows on the last trading day, with ARK 21Shares’ ARKB leading the pack. The inflows recorded were as follows:

  • ARK 21Shares’ ARKB, $109.86 million, 7-day inflow streak.
  • BlackRock’s IBIT, $70.41 million, 5-day inflow streak.
  • Bitwise’s BITB, $35.96 million.
  • VanEck’s HODL, $23.34 million.
  • Fidelity’s FBTC,  $18.0 million, 6-day inflow streak.
  • Invesco’s BTCO, $16.11 million.
  • Franklin Templeton’s EZBC, Wisdom Tree’s BTCW, Grayscale’s GBTC and BTC, and Hashdex’s DEFI saw no flows.

Whale accumulation intensifies

This week’s inflows into Bitcoin (BTC) products signal strong demand among retail and institutional investors and came alongside an interesting accumulation pattern noted among whales. 

On X, CryptoQuant author Woominkyu pointed out that the Bitcoin whale ratio on spot exchanges is looking a lot like it did back in July 2020, right after the COVID crash. According to the chart he shared, that’s when a major Bitcoin rally took off — hinting that whales might be gearing up for another long-term price surge. (See below.)

Bitcoin ETFs surpass $2.1b weekly inflows, whale accumulation mirrors 2020 rally - 1
Spot exchange whale ratio for Bitcoin | Source: Woominkyu

A similar accumulation pattern was also observed among newer whales by fellow analyst and CryptoQuant CEO Ki-Young Ju, who wrote in an Oct 16 X post that new whale wallets with an average coin age of under 155 days reached a new high of 1.97 million BTC. (See below.)

Whales are often referred to as “smart money” because they tend to buy during market dips and hold through the ups and downs, using their deep pockets and strategic timing to make calculated moves. Their actions can often signal where the market might be heading next, as they usually position themselves ahead of big price shifts.

While the uptick in whale accumulation has ignited hopes of a forthcoming rally, several market analysts are also expecting the bellwether to reach a new all-time high soon buoyed by the upcoming U.S. presidential elections as a potential catalyst.

Pseudonymous trader Crypto Raven pointed out that polls show increasing odds for Republican candidate Donald Trump winning the November elections, which could be just the push BTC needs to hit new highs. As Raven put it, “everything goes this smooth, we could aim for the moon.”

On a more bullish note, Bitwise CIO Matt Hougan predicts Bitcoin will hit six figures, driven not just by the upcoming elections, but also by a surge in institutional demand and other macroeconomic factors.

At press time, the flagship cryptocurrency was trading at $68,280, up 8.5% over the past week.





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24/7 Cryptocurrency News

Spot Bitcoin ETF Inflows Shoot Over $555 Million, Is It A Better Bet Than MicroStrategy?

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4 days ago

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October 15, 2024

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After a dull start to October, inflows into the spot Bitcoin ETFs have surged significantly again! On Monday, the US BTC ETFs saw inflows to the tune of $555 million scooping 8,359 Bitcoins from the open market. These inflows were nearly double what we saw last Friday ($253 million) as the US stock indices continue to show strength. Some investors argue that betting on BTC ETFs is more beneficial than betting on MicroStrategy (MSTR) as its stock price is trading at a very high premium in comparison to its Bitcoin holdings.

Spot Bitcoin ETF vs MicroStrategy

The massive inflows into spot Bitcoin ETFs show potential institutional demand for the investment product. On Monday, Fidelity’s FBTC led the ETF market with $239.3 million in inflows followed by Bitwise’s BITB at $100.2 million in inflows. BlackRock’s IBIT came third at $79.5 million inflows, as per Farside Investors.

These inflows came as the BTC price bounced back all the way to $66,000 earlier today breaching crucial resistance levels. Interestingly, yesterday’s inflows into spot Bitcoin ETFs mark the highest in over four months since June 5, 2024, and the eighth largest daily inflow since the launch in January.

Besides, investors have started comparing spot BTC ETFs to MicroStrategy (MSTR) as a proxy bet on the world’s largest digital asset. Following a huge rally over the past week to its all-time high above $220 levels, the MicroStrategy stock plunged by 5.1% on Monday.

Market analysts remain divided as to what is a better proxy bet for Bitcoin – the spot BTC ETFs or MicroStrategy. Nate Geraci, the President of ETF Store wrote:

“ETFs provide the same exposure without relying on the continuation of a fragile valuation premium.”

Currently, MicroStrategy’s total Bitcoin holdings are worth $15.5 billion while the company valuation is at $42 billion i.e. 2.7x. Some market analysts have been raising concerns of overvaluation in MSTR against its Bitcoin holdings.

However, “Bitcoin Guy” Rajat Soni has justified the valuations by stating that MSTR offers higher risk-adjusted returns than spot Bitcoin ETFs. Recently Michael Saylor shared his bold plans of converting MicroStrategy into the first trillion-dollar Bitcoin bank.

Larry Fink – Bitcoin Will Be Greater Than US Housing Market

In his latest interview, BlackRock CEO Larry Fink stated that Bitcoin will be as huge as the US housing market. This is a massive statement considering the fact that the size of the US housing market is at $50 trillion.

The housing market could reach $100 trillion by 2040. That’s 76 times Bitcoin’s current market cap of $1.3 trillion. In other words, Bitcoin could hit $5 million, according to one of the most influential figures in global finance. Thus, the inflows so far into spot Bitcoin ETF are just the beginning of the larger picture ahead.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Bitwise Files For Another ETF Following XRP ETF Filing

Published

2 weeks ago

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October 4, 2024

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Bitwise Asset Management had a new ETF filing – more precisely, it filed to convert three crypto futures ETFs from long-only strategies to strategies that rotate between crypto futures and US Treasuries exposure based on market trends. The ticker will be $BITC.

The above strategy, to be undertaken in aid of helping to reduce downside risk and foster long-term growth, shall be effective on or about December 3, 2024.

Bitwise File For ETF To Rotate Between Crypto and Treasuries

Bitwise has, therefore, submitted a proposal to the SEC for a new ETF focused on Bitcoin and treasuries. The company is reworking the investment strategy of its three crypto futures ETFs to rotate between cryptocurrency and US Treasuries through its proprietary strategy called “Trendwise.” On the given date, Bitcoin Strategy Optimum Roll ETF shall begin operating under Trendwise Bitcoin and Treasuries Rotation Strategy ETF (BITC).

Ethereum Strategy ETF shall be renamed Trendwise Ethereum and Treasuries Rotation Strategy ETF, and Bitcoin and Ether Equal Weight Strategy ETF shall operate under the new name of Trendwise BTC/ETH and Treasuries Rotation Strategy ETF.

BITC announcementBITC announcement
Credit: sec.gov

The new strategy dynamically responds to market trends and volatility with minimal perturbation. It also keeps the focus of its investments on long-term price appreciation.

According  to Bitwise CIO Matt Hougan:

“Momentum is a well-established factor in virtually every asset class, and it is powerful in crypto as well. The new Trendwise strategies capitalize on that momentum through a trend-following strategy that rotates between crypto and Treasuries exposure based on market direction. The goal is to help minimize downside volatility and potentially improve risk-adjusted returns.”

Bitwise relies on a proprietary signal of market momentum for crypto assets as its strategy. It includes Bitcoin and Ethereum and is determined by the 10- and 20-day exponential moving averages.

The funds would normally invest in the respective cryptocurrencies as long as the 10-day EMA was above the 20-day EMA-a condition. That indicates upward momentum and can shift to US Treasuries if that happens the other way around. The funds will maintain the current expense ratios and tax treatments. Also, there would not be any action item required to be taken by the existing investors.

Bitwise Wants to Expand Crypto Offerings with XRP ETF

This move adds to an event-filled year 2024 for Bitwise. This year, the company launched its first spot Bitcoin ETP in January and its first Ethereum ETP in July. In August, this world’s largest crypto index fund manager expanded its European presence by acquiring crypto fund provider ETC Group.

Recently, the crypto index fund manager Bitwise filed an S-1 registration with the SEC to offer a spot XRP ETF. Investors, if approved, would see direct exposure to the Ripple Labs crypto token. This would mean further inroads into the mainstream opportunities for crypto investment. The investments would go through regulated financial products in the US market.

The development marks another step in the expansion of crypto investment options. It also fuels optimism about broader access to XRP through a regulated financial product.

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Teuta

Teuta is a seasoned writer and editor with over 15 years of experience in macroeconomics, technology, and the cryptocurrency and blockchain industries. Starting her career in 2005 as a lifestyle writer for Cosmopolitan in Croatia, she expanded into covering business and economy for several esteemed publications like Forbes and Bloomberg. Influenced by figures like Don Tapscott and Bruce Dickinson, Teuta embraced the blockchain revolution, believing crypto to be one of humanity’s most crucial inventions. Her fintech involvement began in 2014, focusing on crypto, blockchain, NFTs, and Web3. Known for her excellent teamwork and communication skills, Teuta holds a double MA in Political Science and Law, enjoys punk rock, chablis, and has a passion for shoes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Bitcoin ETF

Spot Crypto ETFs Prompted Bitwise to Rethink Its Fund Lineup

Published

2 weeks ago

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October 4, 2024

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“Bitwise is likely just catering to things they’re hearing from clients and potential clients,” said James Seyffart, ETF analyst at Bloomberg Intelligence. “They have an actively managed division within Bitwise, so it makes sense to give it a try. We know there are investors looking to invest in bitcoin but who want to limit the volatility and particularly the downside volatility/drawdowns. I think that’s what this will aim to do. Whether or not it will be successful is something we will learn in the coming years, but timing the market is extremely hard.”



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