{"id":17931,"date":"2024-10-21T13:05:16","date_gmt":"2024-10-21T10:05:16","guid":{"rendered":"https:\/\/forklog.com\/en\/institutional-demand-drives-inflows-to-bitcoin-etfs-expert-explains\/"},"modified":"2024-10-21T13:05:16","modified_gmt":"2024-10-21T10:05:16","slug":"institutional-demand-drives-inflows-to-bitcoin-etfs-expert-explains","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/institutional-demand-drives-inflows-to-bitcoin-etfs-expert-explains\/","title":{"rendered":"Institutional Demand Drives Inflows to Bitcoin ETFs, Expert Explains"},"content":{"rendered":"<p>On October 18, inflows into spot Bitcoin ETFs reached <a href=\"https:\/\/sosovalue.xyz\/assets\/etf\/us-btc-spot\">$273.7 million<\/a>, with a total of $2.38 billion over the past six days.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/1-1266.webp\" alt=\"1-1266\" class=\"wp-image-243555\"\/><figcaption class=\"wp-element-caption\">Data: SoSoValue.<\/figcaption><\/figure>\n<p>Cumulative inflows into these products <a href=\"https:\/\/forklog.com\/en\/news\/sec-approves-all-11-spot-bitcoin-etf-applications\">since trading began<\/a> in January have approached $21 billion.<\/p>\n<p>Nate Geraci, president of ETF Store, commented on the data.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Monster day for spot btc ETFs\u2026<\/p>\n<p>$550mil inflows.<\/p>\n<p>Now approaching *$20bil* net inflows in 10mos.<\/p>\n<p>Simply ridiculous &#038; blows away every pre-launch demand estimate.<\/p>\n<p>This is NOT \u201cdegen retail\u201d $$$ IMO.<\/p>\n<p>It\u2019s advisors &#038; institutional investors continuing to slowly adopt.<\/p>\n<p>\u2014 Nate Geraci (@NateGeraci) <a href=\"https:\/\/twitter.com\/NateGeraci\/status\/1846015202564747387?ref_src=twsrc%5Etfw\">October 15, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cThis is simply ridiculous and blows away every pre-launch demand estimate. This is not \u2018degen retail\u2019 dollars. It\u2019s advisors and institutional investors who continue to gradually adopt the market,\u201d<\/em> he noted.<\/p>\n<\/blockquote>\n<p>Chris Aruliah, head of institutional relations at Bybit, explained the increased inflows in a conversation with <a href=\"https:\/\/cointelegraph.com\/news\/556m-spot-bitcoin-etf-inflows-investors\">Cointelegraph<\/a>, attributing them to the upcoming US elections.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cAs we approach November, investors may be more confident in betting on a renewed bullish trend. Both candidates have made positive statements regarding cryptocurrencies, and regulatory clarity is expected,\u201d<\/em> the top manager explained.<\/p>\n<\/blockquote>\n<p>Alicia Kao, managing director at KuCoin, cited macroeconomic indicators that have reduced concerns about recession risks amid a decrease in the <span data-descr=\"Federal Reserve System of the United States\" class=\"old_tooltip\">Fed<\/span> key rate. She also noted the growing interest from institutions in ETFs.<\/p>\n<h2 class=\"wp-block-heading\"><strong>The Role of Institutional Investors<\/strong><\/h2>\n<p>A KuCoin representative referred to a <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-10-10\/almost-half-of-traditional-hedge-funds-are-dabbling-in-crypto\">PwC and AIMA study<\/a>, which found that 47% of traditional hedge funds are investing in cryptocurrencies, up from 29% in 2023. Key drivers include regulatory transparency in the US and Asia, as well as the launch of ETFs.<\/p>\n<p>Mythil Thakore, CEO and co-founder of Velar, described the current situation as a \u201cperfect storm\u201d for investing in digital assets globally.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cWe have exceeded $20 billion [in <span data-descr=\"assets under management\" class=\"old_tooltip\">AUM<\/span> for BTC-ETFs]. It took gold more than four years to reach this,\u201d<\/em> the expert pointed out.<\/p>\n<\/blockquote>\n<p>VALR&#8217;s market director Ben Caselin supported his colleague:<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cThe participation of financial advisors and pension funds is crucial for Bitcoin to reach new highs and to displace gold as an asset distinct from <span data-descr=\"traditional finance\" class=\"old_tooltip\">TradFi<\/span>,\u201d<\/em> he emphasized.<\/p>\n<\/blockquote>\n<p>Kao noted that in the second quarter, the number of institutional holders of BTC-ETFs increased by 27% (262), with their total number exceeding 1000.<\/p>\n<p>According to her estimates, as of June 30, 2024, this category accounted for only 21.15% of the funds&#8217; AUM. For comparison, at the end of the first quarter, the figure was 18.7%.<\/p>\n<p>Caselin is convinced that while gold has a millennia-long history as a legitimate store of value, the modern digital era has brought Bitcoin and all its unique advantages:<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cThe 15-year evolution of the first cryptocurrency as a technological asset aligns with modern financial trends, allowing it to attract capital faster than traditional assets.\u201d<\/em><\/p>\n<\/blockquote>\n<p>Investments by Morgan Stanley in spot Bitcoin ETFs have reached $272 million.<\/p>\n<p>Over the next 18 months, about 10% of American companies are expected to convert 1.5% of their reserves (approximately $10.35 trillion) into the first cryptocurrency, according to River.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On October 18, inflows into spot Bitcoin ETFs reached $273.7 million, with a total of $2.38 billion over the past six days. Data: SoSoValue. Cumulative inflows into these products since trading began in January have approached $21 billion. Nate Geraci, president of ETF Store, commented on the data. Monster day for spot btc ETFs\u2026 $550mil [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":17930,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[569,1156,1145,1150,1138],"class_list":["post-17931","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-etf","tag-institutional-investors-and-whales","tag-market-analysis","tag-news-plus","tag-opinions"],"aioseo_notices":[],"amp_enabled":true,"views":"34","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/17931","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=17931"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/17931\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/17930"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=17931"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=17931"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=17931"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}