Despite the recent milestone achieved by spot Bitcoin exchange-traded funds (ETFs), the price of Bitcoin is still struggling to surpass the $70,000 mark. On October 17th, US-based spot Bitcoin ETFs reached a total net flow of $20 billion, just 10 months after their launch. In comparison, it took gold ETFs nearly five years to reach the same milestone. According to data from Cointelegraph, BTC rose to a high of $69,487 on October 21st before pulling back to $68,570 as of 8:25 am UTC.
Bitfinex analysts suggest that the slow price movement could be attributed to the delayed impact of ETF inflows on the spot BTC price, which can take a few days to materialize. These analysts also noted that crypto traders may be using ETF flows as an exit strategy for their trades, as indicated by the ask-heavy order book. The positive inflows from ETFs have the potential to drive the Bitcoin price to a new all-time high. In fact, just one month after the launch of US-based spot BTC ETFs, they accounted for approximately 75% of new investments in the cryptocurrency, which had already surpassed the $50,000 mark at the time.
Despite the limited immediate impact of Bitcoin ETFs on the price, with several days often passing before inflows generate bullish momentum, BlackRock’s iShares Bitcoin Trust ETF attracted over $1.17 billion worth of Bitcoin in the past week, according to onchain intelligence firm Lookonchain. Bitfinex analysts explained that a portion of these inflows could also be attributed to a delta-neutral trading strategy, which could be another reason for the muted price impact.
In a positive sign for price action, Bitcoin managed to close the week in the green above the psychological level of $69,000. This could potentially set Bitcoin up for a rally to retest the re-accumulation range above $71,000 for the first time since June 2024, according to popular crypto analyst Rekt Capital. Furthermore, the approval of the first Bitcoin ETF options in the US by the Securities and Exchange Commission on October 18th could lead to more positive ETF inflows in the future.
Overall, the Bitcoin price continues to be influenced by the dynamics of ETF inflows and traders’ strategies. The recent milestones achieved by spot Bitcoin ETFs indicate the growing interest in Bitcoin as an investment asset.