Bitcoin's recent price surge above $65,000 has garnered significant media attention, particularly due to substantial inflows into spot Bitcoin ETFs. According to Farside Investors, these inflows reached $365 million by September 26, 2024, highlighting increasing institutional interest.
BlackRock's Bitcoin ETF experienced the biggest daily flow for the month, surging by about $184 million on September 25, 2024. This spike corresponds with withdrawals from other ETFs, marking a shift in institutional investor sentiment.
For the past five days, cumulative inflows into US spot Bitcoin ETFs have exceeded $497 million, partly driven by the Federal Reserve's decision to lower interest rates by 50 basis points.
The overall digital asset investment products saw a second consecutive week of inflows, totaling approximately $321 million, with Bitcoin accounting for $284 million of that total.
This surge into Bitcoin ETFs indicates a larger trend where institutional investors view Bitcoin as a strategic asset. The Federal Reserve's dovish stance has provided economic stability, boosting investor confidence.
Despite BlackRock's success, other ETFs like Ark 21Shares and Fidelity's Wise Bitcoin Origin Fund saw large withdrawals. Analysts closely monitor future price movements as over 90% of Bitcoin holders are in profit, raising concerns about potential sell-offs.
Upcoming expiration of $5.8 billion worth of options contracts adds to market complexities. Traders are keenly watching key resistance levels, particularly $66,000, which could trigger further positive momentum.
