Bitcoin ETFs Experience Demand Surge: $1.2 Billion Investment

Intense Interest in Bitcoin ETFs

Recently, Bitcoin exchange-traded funds (ETFs) have been attracting significant interest from investors. Last week, treasury firms accumulated $1.2 billion worth of Bitcoin, which analysts deemed an important development. Particularly, U.S. spot Bitcoin ETFs recorded their highest inflow week since beginning trading in January 2024.

$3.24 Billion Inflow in One Week

According to recent data, Bitcoin ETFs recorded a total inflow of $3.24 billion. This amount marks the second highest weekly inflow after the $3.38 billion recorded on November 22 of last year. Bitcoin’s recent test of its all-time high of $124,000 reached in August has been a key factor driving investor interest.

Bitcoin Price at a Critical Level

Recently, Bitcoin reached a new peak above $125,000, providing a positive signal for investors. Additionally, October is generally known to be a strong period for Bitcoin prices. The partial government shutdown in the United States has also been among the factors contributing to the appreciation of Bitcoin's value.

Institutional Demand and Future Expectations

According to Vincent Liu, the chief investment officer of quantitative trading firm Kronos Research, the main reason for the Bitcoin price increase was the inflows into ETFs. Liu noted that along with other factors, tight exchange supply, a weak dollar, and macroeconomic uncertainties have supported this rise.

Rapid Purchases from Crypto Companies

Last week, Bitcoin treasury firms made notable purchases. Japanese investment company Metaplanet led the way by buying 5,258 Bitcoin on Wednesday and purchased over 6,702 coins in total. While Bitcoin miners produce an average of 900 Bitcoin daily, financial services companies purchase about 1,755 Bitcoin each day. ETFs, on the other hand, are projected to access an average of 1,430 Bitcoin daily throughout 2025.

This information is not investment advice.