Bitcoin is demonstrating robust signs of recovery, marked by a significant rebound in inflows last week.
According to CoinShares, Bitcoin exchange-traded funds (ETFs) attracted approximately $2 billion in inflows, matching the highest total recorded since July. Analysts from Bernstein have observed a shift in the market dynamics, noting that the interest in Bitcoin ETFs now extends beyond hedge fund arbitrage, reflecting genuine demand that is reshaping the investment landscape.
Despite Bitcoin retracting some of its gains and stabilizing around $67,000 on Monday morning—after briefly approaching $70,000 over the weekend—the momentum appears to be building. Analysts attribute this renewed interest to retail investors and wealth advisors, which could lay a strong foundation for future growth.
“We believe the incremental ETF inflows are increasingly leading to spot demand for Bitcoin, as asset managers focus on distribution to wealth advisors and wirehouses. This is different from the initial ETF demand, which primarily stemmed from hedge funds and arbitrage funds engaging in spot-CME derivatives carry trades,” stated Gautam Chhugani, a Bernstein analyst.
In just ten months, over $20 billion has flowed into Bitcoin ETFs, a milestone that took gold ETFs five years to achieve.
CoinShares analyst James Butterfill suggested that the recent surge in investment interest may be linked to rising expectations regarding President Trump’s chances in the upcoming elections. “We believe this renewed optimism stems from growing expectations of a Republican victory in the upcoming U.S. elections, as they are generally viewed as more supportive of digital assets,” he remarked. He also noted that the inflows and outflows of digital asset investment products vary significantly by region.
The report revealed a polarized picture in regional flows, with the U.S. experiencing $2.3 billion in inflows while almost every other country saw minor outflows. Notable outflows were recorded in Canada, Sweden, and Switzerland, amounting to $20 million, $18 million, and $15 million, respectively.
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