Spot Bitcoin ETFs See Over $19.3 Billion in Net Inflows This Year

Eric Balchunas, a Bloomberg ETF analyst, reports that spot Bitcoin (BTC) exchange-traded funds have seen over $19.3 billion in net inflows this year.

He noted that this figure is unexpectedly strong and serves as a crucial indicator of success, especially in light of Grayscale’s GBTC unlock and the net price movements.

And after dust settled on the downturn in btc last 2wks (altho it came back a bit) the YTD net total flows are at an ATH of +$19b which is surprisingly strong all things considered (again this number is most imp metric to measure success IMO bc net price moves and GBTC unlock). pic.twitter.com/AuJ189ttVw

— Eric Balchunas (@EricBalchunas) August 12, 2024

Balchunas also highlighted that US ETFs are on track to become the largest holders of BTC, surpassing even Satoshi Nakamoto, Bitcoin’s pseudonymous creator.

Didn’t realize US ETFs are on track to pass Satoshi in bitcoin held in October. BlackRock alone is already #3 and on pace to be #1 late next year, and will likely stay there for a very long time Ht @EdmondsonShaun pic.twitter.com/QGsO00zrxp

— Eric Balchunas (@EricBalchunas) August 12, 2024

BlackRock, for instance, has already become the third-largest holder and is expected to take the top spot by late next year, a position it is likely to maintain for a long time.

He further explained that ETF holders provide Bitcoin with a level of stability amid market volatility. For example, IBIT investors remained unfazed by a 14% drop over the weekend following an 8% decline the previous week, showing no significant outflows.

This behavior contrasts with more volatile traders and suggests that these investors offer a stabilizing presence in the market.