Bitcoin ETFs gain $4.8B in just 13 days, highlighting demand for its role as a “digital store of value.”
Bitcoin ETFs lead over Ethereum ETFs, with $72B in assets as Ethereum faces net outflows and investor hesitancy.
Skepticism persists, but Bitcoin ETFs continue to attract funds, aiming to rival gold's role as a hedge against currency instability.
Bitcoin ETFs have seen “extreme” inflows, particularly in the past two weeks, signaling surging interest in Bitcoin’s potential as a “digital gold.” Bloomberg analyst James Seyffart reported that Bitcoin ETFs saw nearly $5 billion in inflows over 13 consecutive days, marking one of the highest inflow streaks recorded.
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On October 30, spot Bitcoin ETFs witnessed their second-largest daily inflow in history, with $893 million, second only to a $1.05 billion inflow on March 12. The notable surge highlights growing enthusiasm for Bitcoin as a reliable store of value, particularly as some investors consider its performance favorable under a potential Trump presidency.
Strong Demand for Bitcoin ETFs Reaches New Heights
According to Seyffart, demand for Bitcoin ETFs has been exceptionally high, attracting over $4.8 billion over the past 13 trading days. While some of this demand could be linked to Bitcoin’s recent price movements, Seyffart suggests that momentum-chasing investors may also play a role.
The recent rise in Bitcoin ETF inflows has sparked conversations on whether this trend is sustainable, as Seyffart points out that successful ETFs typically experience “upward trends over the long term,” despite occasional fluctuations. However, Bitcoin's status as “digital gold” appeals to those skeptical of traditional currencies, positioning it as a hedge against currency debasement.
Bitcoin Outshines Ethereum in ETF Inflows
Seyffart noted the disparity between Bitcoin and Ethereum ETFs, emphasizing that Ethereum ETFs have not captured comparable investor interest. While Bitcoin ETFs have amassed $72 billion in assets, Ethereum ETFs, which launched in July, have seen net outflows of approximately $500 million.
This imbalance shows Bitcoin’s unique appeal as a straightforward “digital store of value.” Seyffart explained that investors might find Bitcoin easier to understand compared to Ethereum, which some view as more complex due to its varied applications. This simplicity could be why Bitcoin, despite market skepticism, is widely accepted as a potential hedge against financial instability.
Investor Skepticism Remains High as Bitcoin ETFs Rise
Despite Bitcoin ETF inflows soaring, Seyffart pointed out that skepticism around Bitcoin persists, particularly within traditional finance circles. Many in the financial sector remain hesitant about Bitcoin, with some dismissing its long-term viability.
Nonetheless, Seyffart believes there’s room for growth in Bitcoin ETF assets, which already hold $72 billion, while gold ETFs boast $130 billion in assets. Further inflows could help the Bitcoin carve a stable place in traditional financial markets, despite lingering doubts from analysts and investors.
