Bitcoin Closes In On $65K As ETFs See Over $400M In Net Inflows
By Benzinga
Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) exchange-traded funds (ETFs) saw an inflow surge totaling $407 million last week.
The inflow was driven primarily by shifting political winds rather than monetary policy considerations.
What Happened: The recent U.S. vice presidential debate and subsequent polling shift towards Republicans, perceived as more crypto-friendly, sparked an immediate boost in both inflows and prices, according to James Butterfill, Head of Research at CoinShares.
This political influence overshadowed strong economic data, which had minimal impact on stemming outflows, the analyst stated in Monday’s report.
As expected, given the political nature of these inflows, the U.S. dominated with $406 million in net inflows, while Canada contributed a modest $4.8 million.
Bitcoin emerged as the primary beneficiary, attracting $419 million in inflows. Conversely, short-Bitcoin products saw outflows of $6.3 million. The biggest winners were the iShares Bitcoin Trust (NASDAQ: IBIT) and the Fidelity Wise Origin Bitcoin Fund (BATS:FBTC), with net inflows of $158 million and $138 million, respectively.
Multi-asset investment products continued their positive streak with a 17th consecutive week of inflows, albeit a modest $1.5 million. Ethereum resumed its trend of outflows, shedding $9.8 million last week.
Blockchain equity ETFs experienced one of their largest weekly inflows this year, totaling $34 million. This surge likely reflects investor optimism following recent Bitcoin price increases.
Butterfill emphasized the broader implications of these trends, stating, “We believe investor decisions have likely been more influenced by the upcoming US elections than monetary policy outlooks.”
Price Action: Bitcoin surged 3.4% to $64,875 on Monday morning. Ethereum is up 3.5% to $2,555.
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