Exchange-traded funds began October with the second-largest inflows since their launch, indicating renewed investor optimism.
Over the last trading week bitcoin ETF raised a total of about $3,24 billion, slightly below the record of $3,38 billion set in the week ending November 22, 2024.
The impressive inflows of recent days stand in stark contrast to the outflows of last week, when investors withdrew nearly $902 million from funds. Analysts attribute this reversal to growing expectations of another interest rate cut in the US, which triggered a “sentiment shift” that led to renewed investor demand for bitcoin ETF.
Over the past four weeks, the inflow of funds has amounted to almost $4 billion. At the current rate, more than 100,000 BTC could be withdrawn from circulation in the fourth quarter, which is twice the volume of new emissions, he noted. Analyst at digital asset platform Nexo Ilya Kalchev.
The continued influx of funds into ETF could provide significant support for Bitcoin in October, which is Bitcoin’s second-best month in terms of average historical returns. Crypto investors often refer to it as «Uptober.»
This week, the price of the flagship asset briefly rose above $123,996, raising speculation that a new record could be set.