Bitcoin exchange-traded funds (ETFs) have experienced a surge in inflows, reaching a record $2.1 billion in just one week. This increase in investment mirrors the rally seen in 2020, with whales loading up on Bitcoin at a rapid pace.
In the past week, inflows into 12 spot Bitcoin ETFs totaled $2.13 billion, marking the first time weekly inflows have exceeded $2 billion since March 2024. The total net inflows across Bitcoin ETFs have now reached a record $20.94 billion, surpassing the milestone achieved by gold ETFs in a much shorter time frame.
While weekly inflows peaked on October 14 at $555.86 million, they slowed down to $273.71 million by October 18. Despite this dip in pace, none of the funds saw negative flows, with ARK 21Shares’ ARKB leading the way with $109.86 million in inflows and a 7-day streak.
The increase in inflows into Bitcoin products indicates strong demand from both retail and institutional investors. This trend is further supported by the accumulation pattern observed among whales, who are known for making strategic moves in the market. The whale ratio on spot exchanges is reminiscent of patterns seen before major rallies, suggesting that a long-term price surge may be on the horizon.
Newer whales, with an average coin age of under 155 days, now hold 1.97 million BTC, representing a significant increase in their holdings. These whales, often considered “smart money,” are closely watched by market analysts for signals of future price movements.
While the uptick in whale accumulation has raised hopes for a potential rally, market analysts are also looking to external factors such as the upcoming U.S. presidential elections for further price catalysts. With polls indicating a higher likelihood of a Republican candidate winning, there is optimism that Bitcoin could reach new all-time highs in the near future.
Bitwise CIO Matt Hougan is bullish on Bitcoin’s future, predicting that the cryptocurrency could reach six figures driven by institutional demand and macroeconomic factors. At the time of writing, Bitcoin is trading at $68,280, reflecting an 8.5% increase over the past week.
Overall, the record inflows into Bitcoin ETFs and the accumulation patterns observed among whales signal a growing interest in cryptocurrency investments. With various factors at play, the future price trajectory of Bitcoin remains uncertain but optimistic, with many eyes on potential catalysts for further growth.