- Bitcoin ETFs recorded the highest inflows in almost five months.
- ETFs could likely catch up to Satoshi’s holdings in December.
Bitcoin [BTC] continued to exceed expectations thanks to staggering price growth and record inflows from Exchange Traded Funds (ETFs).
On October 29, BTC peaked at over $73,000. At the same time, spot BTC ETFs reported net inflows of $870 million facts from SoSo Value.
This was the highest net inflow in one day since early June.
Source: SoSo value
It’s worth noting that such volume spikes are typically expected during recessions as investors “buy the dip.”
Ergo the question: why is the inflow increasing alongside a rising BTC price?
Why are Bitcoin ETF inflows increasing?
Interestingly, Eric Balchunas, senior ETF analyst at Bloomberg, also found this increase “a little strange” in a recent report. after on X. However, he explained:
“Occasionally, volume can spike when there’s a FOMO frenzy.”
The analyst further noted:
“Look forward to (more) large inflows this week.”
He added that iShares Bitcoin Trust ($IBIT) saw trading volumes rise to $3.3 billion, the largest figure in six months. Nevertheless, this product was not the only one with increased trading volumes.
While leading by a significant margin, all major Bitcoin ETFs experienced increased activity, indicating that FOMO certainly played a role.
ETFs are closing in on Satoshi
Interestingly, inflows weren’t the only area where ETFs seemed to do well. In another post, Balchunas marked that a major milestone is looming for Bitcoin ETFs as the total number of BTC held by US spot ETFs will cross the 1 million BTC mark next Wednesday.
Furthermore, it could exceed the assets attributed to Bitcoin creator Satoshi Nakamoto by mid-December.
Source: Eric Balchunas/X
He noted that the ETFs have acquired approximately 17,000 BTC weekly, bringing them closer to owning more Bitcoin than the iconic Satoshi wallet – a historic achievement for this asset class.
Still, Balchunas warned that this rapid accumulation will not come without potential disruptions, stating:
“Anything can happen, for example a violent sell-off and all of this gets postponed, although it is still unavoidable.”
He added that under certain circumstances, including a price increase or Donald Trump taking over the Oval Office, FOMO could accelerate the timeline even further.
Institutional demand continues to rise
Meanwhile, adoption of Bitcoin ETFs has expanded among every type of institutional investor. Balchunas noted that recently, Emory University became the first endowment fund to report a Bitcoin ETF position.
The university announced ownership of more than $15 million worth of stock in the Grayscale Bitcoin Mini Trust submit with the US Securities and Exchange Commission [SEC].
This development indicated that Bitcoin ETFs are now represented across a broad spectrum of institutional categories, including banks, hedge funds, insurance companies, advisors, pensions, venture capital and family offices.
Read Bitcoin’s [BTC] Price forecast 2024–2025
For an ETF market segment less than a year old, this level of institutional adoption underscored Bitcoin’s maturing role in traditional finance and its appeal among professional investors.