BlackRock’s iShares Bitcoin Trust (IBIT) continues to capture investor attention, ending Wednesday with over $317 million in net inflows. This comes at a time when many competing ETFs struggle to sustain positive momentum.
Trailing IBIT, Grayscale’s Bitcoin Mini Trust reported gains of nearly $5 million, according to data from Farside Investors. In contrast, ARK Invest’s ARKB, Bitwise’s BITB, and VanEck’s HODL faced a combined loss of approximately $130 million.
IBIT’s substantial inflows, coupled with additional capital from Bitcoin (BTC), helped US spot Bitcoin ETFs reverse a recent negative trend, collectively attracting around $192 million. This week has seen mixed trends among these funds, a shift from last week when no net outflows were recorded. After a $294 million gain on Monday, inflows turned negative on Tuesday.
The ARKB fund, which had experienced over $300 million in inflows last week, has been significantly impacted, facing nearly $240 million in redemptions this week, nearly erasing its prior gains. Meanwhile, Grayscale’s Bitcoin Trust (GBTC) saw outflows slow down, with only about $5 million lost on Monday.
These performance shifts align with Bitcoin’s price fluctuations. After hitting a peak of $69,500 last week, Bitcoin has retraced to around $67,000, as reported by CoinGecko. Analysts at Standard Chartered remain optimistic, believing Bitcoin could revisit its all-time high before the upcoming presidential election, enhancing the prospect of an “Uptober.”
However, recent price declines may temper this optimism, especially with the election on the horizon. Investors typically react to anticipated results, leading to increased volatility as traders sell off assets to secure profits ahead of announcements.
While Bitcoin's price movements are more influenced by broader macroeconomic trends than specific political events, significant news surrounding the election could provoke investor reactions as they adjust portfolios based on perceived risks or opportunities. Some analysts predict that a Trump victory could lead to a surge in Bitcoin prices due to his supportive stance on cryptocurrency.
Once the election concludes, market activity is expected to remain dynamic as the Federal Open Market Committee (FOMC) convenes for its next meeting, where an interest rate decision will be made. Analysts anticipate a potential 25 basis point cut, which could further support Bitcoin’s price movement.
October 2024, Cryptoniteuae