Spot Bitcoin ETFs Surpass $20 Billion in Inflows as Price Hovers $67,000 Mark

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As a seasoned analyst with over two decades of experience in the financial markets, I must say that the rapid growth and success of Bitcoin ETFs is nothing short of remarkable. It’s fascinating to see how quickly these funds have amassed $65 billion in assets under management, surpassing what took gold ETFs five years to achieve.

This year, Bitcoin exchange-traded funds (ETFs), which began trading following approval from the U.S. Securities and Exchange Commission, have amassed more than $20 billion in combined investments. Among these ETFs, BlackRock’s iShares Bitcoin Trust (IBIT) has attracted the most inflows at approximately $22.4 billion.

Based on information from Eric Balchunas, Bloomberg’s senior ETF analyst, who posted on social media platform X, these funds surpassed $20 billion after experiencing over $1.5 billion in inflows during the last week. This significant increase occurred while the price of Bitcoin climbed more than 10% to around $67,000 within that same period.

As an analyst, I’ve noticed that Fidelity’s FBTC has been the significant player driving inflows of $10.2 billion following the introduction of IBIT, with the ARK 21Shares Bitcoin ETF also making a strong showing. On the other hand, the only Bitcoin ETFs experiencing outflows this year are DEFI from Hashdex, which has seen withdrawals amounting to $1.79 million, and GBTC from Grayscale, with substantial outflows totaling $20.1 billion.

Bitcoin ETFs have crossed $20b in total net flows (the most imp number, most difficult metric to grow in ETF world) for first time after huge week of $1.5b. For context, it took gold ETFs about 5yrs to reach same number. Total assets now $65b, also a high water mark.

— Eric Balchunas (@EricBalchunas) October 17, 2024

The combined value of these funds’ managed assets has surpassed $65 billion, as per Balchunas’ statement. This impressive growth follows inflows exceeding $20 billion within just a year, an achievement he notes took gold ETFs five years to accomplish.

As a crypto investor, I’ve observed the significant surge in Bitcoin’s price. This rise has prompted Metaplanet, a publicly-traded firm on the Tokyo Stock Exchange, to revise its earlier-shared Bitcoin put options strategy. They’ve raised the strike price from $62,000 to $66,000, reflecting their continued optimism towards Bitcoin’s potential price trajectory in the future.

The company executed a deal that included buying back 223 Bitcoin put options with an underlying value of $62,000 each, and simultaneously selling an equal number of put options with a $66,000 strike price. This action led to an increase in the company’s estimated return, which now stands at 13.4%, up from 13.1% by approximately 2.65%.

If Bitcoin’s price falls below $66,000, this new call option requires them to purchase Bitcoin at that specific price. They were granted a premium of 5.9095 Bitcoins using the options trading methodology.

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2024-10-18 05:11