European investors are favoring US-based spot BTC ETFs, putting in record sums over the past year.
Investors from Europe have sent record inflows into US spot Bitcoin exchange-traded funds (ETFs) since this day last year or year-to-date (YTD). That has translated to about $105 billion.
Eric Balchunas, senior ETF analyst at Bloomberg, brought the fact to everyone’s attention, stating, “Flows into US-focused ETFs by locals in Europe is now at a record $105b YTD.” He added, “And why not? $SPY is up 24% vs 10% for Europe. Asia also funneling record flows over here as well via @psarofagis.”
As more funds flow into these ETFs, BTC’s price could climb back over the $70,000 resistance, a price point the asset has not seen since the end of July. ETF inflows previously helped spark the asset’s bullish movements in early 2024, with its price crossing the $50,000 mark in February, as 75% of the funds going into the asset came from ETFs. BTC ETFs began trading in the US on January 10.
The Bitcoin Network’s Hashrate Has Peaked
As this news came, the Bitcoin network also marked the highest hashrate it has ever witnessed. Hashrate, a term used to denote the total computing power brought by miners to mine blocks and process transactions for rewards, showcases how secure a proof-of-work (PoW) blockchain is. This all-time high hashrate for Bitcoin highlights the network is as secure as it has ever been. However, an increase in hashrate implies growing mining costs.
BTC ETFs Observed Consecutive Inflows for Six Days Last Week
Balchunas, on October 17, mentioned that BTC ETFs surpassed a whopping $20 billion worth of total net flows, which took gold-based ETFs five years. He said this metric was the toughest one to “grow in (the) ETF world.”
BTC investors worry, however, because, despite all this action, the asset has not surpassed the July 29 price of $69,500. Analysts reason that inflows into ETFs take a few days to affect BTC prices. By the time they influence the asset’s price, ETF interest reverses from spot market investors, causing BTC’s price to not observe the spiking enthusiasts may seek.
Over the past week, BTC ETFs recorded six straight days of net inflows, according to Farside data. They brought in $555 million last Monday, which caused its price to rise by 5% on the same day. The asset’s price went from $62,450 to a high of $66,479.
