FOMO is taking over Bitcoin. ETFs are raking in record flows on the eve of the US presidential election.
1,000,000 BTC…
BlackRock's Bitcoin ETF recorded its best day this Wednesday since its launch in January. The previous record dated March 12. The largest US ETF absorbed the equivalent of $872 million in BTC.
In all, Bitcoin ETFs have attracted nearly $25 billion. Up more than 40% since the start of September. The total figure is 43 billion if we add the Grayscale ETF which previously existed in the form of a trust.
Here is the graph representing these daily net flows since January:
Bitcoin ETFs are a huge hit, especially with retail investors. The latter represent more than 70% of investments via ETF. Large institutional investors are also there. Notably Morgan Stanley, Millennium and the State of Wisconsin which have invested several hundred million dollars.
The CEO of the Bitcoin ETF Bitwise has declared this week that “70% of large investment funds hold bitcoins”. For him, bitcoin will cross the $100,000 mark in 2025.
Overall, ETFs now hold over a million bitcoins on behalf of their clients. BlackRock is in the lead ahead of Fidelity. Here is the world ranking:
1) Satoshi Nakamoto (1.1M BTC)
2) Binance (667,000 BTC)
3) BlackRock (417,000 BTC)
4) Grayscale (254,000 BTC)
5) Microstrategy (252,220 BTC)
6) US Government (203,000 BTC)
7) Chinese Government (194,000 BTC)
8) Fidelity (188,000 BTC)
The price of bitcoin is currently around $72,000, which maintains bullish sentiment and even fuels some “FOMO”.
At the dawn of a Bull Run
The American election is certainly no stranger to the marked rise in bitcoin, which is flirting with its all-time high.
The daily volume of ETFs is close to $5 billion. Here too, we are very close to the historic record:
The recent surge in the BlackRock ETF is due to several key factors, including the reduction of interest rates by central banks. The increase in the overall money supply has the effect of raising the price of all assets.
Conversely, the volume on Ethereum ETFs represents less than $100 million per day. That is to say less than 2% of those of bitcoin. Sophisticated investors have little appetite for a 70% pre-mined shitcoin…
The anticipation of a Donald Trump victory is also part of the rally. The Republican candidate has clearly embraced the cause of bitcoiners.
“Bitcoin is money and we should pay capital gains tax when we use it to buy a coffee? I was talking to a friend who said that really shouldn't be the case and I agree.”he declared this Wednesday.
Difficult to say if traders will sell the news in the face of Donald Trump's probable victory this Tuesday, November 5. But in the medium term, a path is emerging.
“In the short term, all eyes are on bitcoin to see if it can reach a new all-time high”said Min Jung, researcher at Presto Research. “If it breaks through the $73,800 resistance, it could trigger a rally as some are waiting for a breakout to enter the market. »
Another event could also be very bullish: the vote of Microsoft shareholders regarding the adoption of a bitcoin strategy for its treasury. Results in December.
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