Bitcoin ETFs have been riding a new wave of demand, with both retail and institutional investors jumping on the bandwagon. Currently, spot Bitcoin ETFs own close to 5% of the entire Bitcoin supply.
The rise in demand comes at a time when the price of Bitcoin has also been swinging from the red to green territory quite often.
Bitcoin ETFs Mark Another Week of Inflows
Ever since the SEC gave the green signal for Bitcoin ETF, the new financial products have seen most days with green financial inflows.
According to data, on October 4, the net inflow for the Bitcoin spot ETF was $25.5859 million, while the outflow for the Grayscale ETF GBTC was $13.9096 million, the inflow for the Bitwise ETF BITB was $15.2854 million, and the inflow for the Fidelity ETF FBTC was $13.6262 million.
The market has repeatedly put the Bitcoin spot ETF hoopla to the test. Despite this, the market for Spot Bitcoin exchange-traded funds (ETFs) is growing along with risk appetite and investing accessibility. Moreover, demand for Bitcoin ETFs from institutional and ordinary investors has surged dramatically.
Why Are Bitcoin ETFs Gaining Traction?
Bitcoin ETFs, a well-liked investment vehicle for assets like gold, herald the debut of a completely new asset class under the ETF umbrella, giving investors exposure to Bitcoin without having to deal with the potential complexities of the cryptocurrency ecosystem and the hassle of buying and holding the cryptocurrency directly, per Chainalysis report.
Additionally, flows into BTC ETFs are exceeding those into the first net gold ETF (adjusted for inflation) since its introduction in 2005.
By closely resembling conventional investment structures, this approach has possibly attracted a wider range of investors for Bitcoin, including both institutional and retail ones. It also fits nicely into the portfolios of mainstream investors.
Matthew Hougan has previously predicted that $55 billion will be invested in spot bitcoin exchange-traded funds (ETFs) within the first five years of their launch.