European investors have allocated a record amount of capital into spot Bitcoin exchange-traded funds (ETFs) in the United States.
Europeans have invested over $105 billion in spot Bitcoin (BTC) ETFs year-to-date (YTD), marking an all-time high.
The record European ETF flows were shared by Eric Balchunas, a senior ETF analyst at Bloomberg, who wrote in an Oct. 21 X post:
“Flows into US-focused ETFs by locals in Europe is now at a record $105b YTD. And why not? $SPY is up 24% vs 10% for Europe. Asia also funneling record flows.”
International ETF flows to the US. Source: Eric Balchunas
Growing ETF inflows could push Bitcoin to an all-time high from its current crabwalk. Inflows into US Bitcoin ETFs accounted for about 75% of the new capital that helped Bitcoin surpass $50,000 in Feb. 2024.
BTC/USD, monthly chart. Source: TradingView
Despite the record European inflows, Bitstamp data shows that Bitcoin has been unable to recover above the psychological level of $70,000, last visited on July 29.
Related: Bitcoin hashrate hits all-time high, boosting network security
Bitcoin price stalls below $70,000 despite ETF records and hashrate all-time high
This past week, European inflows weren’t the only record milestone for Bitcoin and Bitcoin-based ETFs.
Earlier today, on Oct. 21, Bitcoin’s hashrate — the total computing power securing the network — reached an all-time high, showcasing the network’s growing security and increasing BTC mining costs.
According to Balchunas, on Oct. 17, US Bitcoin ETFs crossed $20 billion in total net flows, or the “most difficult metric to grow” for ETFs. This same milestone took over five years for Gold-based ETFs to cross.
Despite multiple ETF milestones, Bitcoin’s price has been stuck under $69,500 since July. 29.
BTC/USD, 1-week chart. Source: TradingView
Bitfinex analysts attributed this to delayed effects of ETF inflows, which can take several days to impact spot BTC price.
The ask-heavy order book suggests that crypto traders are using ETF flows as exit liquidity for their trades, the analysts told Cointelegraph:
“Usually, this means that large ETF inflows have a muted impact for a few days and then the market reverses lower once the aggression from spot market buyers fades.
Related: Tether’s USDT hits record $120B market cap, flashing ‘Uptober’ signal
Bitcoin ETFs on a six-day winning streak
The Bitcoin ETFs have recorded six consecutive days of net positive inflows, Farside Investors data shows,
Bitcoin ETF Flow (USD, million). Source: Farside Investors
On Oct. 14, the US Bitcoin ETFs bought a cumulative $555 million worth of Bitcoin, resulting in a 5% daily increase in Bitcoin price, from $62,450 to a daily high of $66,479.
Bitcoin ETF dashboard. Source: Dune
Bitcoin ETFs surpassed $66.3 billion in cumulative onchain Bitcoin holdings, representing 4.9% of the current Bitcoin circulating supply, Dune data shows.
Magazine: Bitcoin $233K forecast, SEC X account hacker arrested, and more: Hodler’s Digest, Oct. 13 – 19