Bitcoin ETFs see record inflows, signaling growing investor demand amid market bullishness.
Former Chinese finance minister warns of cryptocurrency risks, urging careful examination of advancements.
After a period of uncertainty, spot Bitcoin [BTC] exchange-traded funds (ETFs) appear to be regaining momentum, marked by unprecedented inflows.
Bitcoin ETF update
As of 27th September, the latest data from Farside Investors revealed cumulative inflows of $494.4 million into Bitcoin ETFs, with the weekend of 28th and 29th September seeing the markets closed.
Notably, while BlackRock’s iShares Bitcoin Trust (IBIT) typically leads in inflows, this time, the ARK 21Shares Bitcoin ETF (ARKB) took the spotlight with an impressive $203.1 million in new investments.
Following closely behind was Fidelity’s FBTC, which garnered $123.6 million, and IBIT, which attracted $110.8 million.
Other ETFs also experienced substantial inflows, including Grayscale’s GBTC, which surprisingly reversed its usual trend of outflows with a notable influx of $26.2 million.
Bitcoin’s price performance
The steady inflows into Bitcoin ETFs signal a growing appetite among investors, as Bitcoin has managed to regain its value in the midst of a bullish market trend.
Just a few days ago, Bitcoin faced challenges breaking past the $60,000 mark but surged to $65,000 on 27th September.
However, as reported by CoinMarketCap, the latest price (i.e. on 30th September) of Bitcoin is $63,602, reflecting a slight decline of 2.92% over the past 24 hours.
This price fluctuation highlights the volatile nature of the cryptocurrency market, even as interest in Bitcoin investment products continues to rise.
What’s more to it?
Amidst this news, there was other news surrounding Bitcoin ETF as highlighted by Bitcoin Whale on X,
“Spot #Bitcoin ETFs bought 17,009 $BTC this week.”
However, they also noted that BTC Miners only created 2,250 more Bitcoin this week and highlighted,
“Demand is exceeding supply.”
Former Chinese finance minister against Bitcoin ETF?
Amid growing cryptocurrency interest, former Chinese finance minister Lou Jiwei urged a careful examination of crypto advancements during the 2024 Tsinghua Wudaokou Chief Economists Forum in Beijing.
He warned about the risks to financial stability, including volatility and money laundering, while noting the US’s changing stance, particularly after the SEC approved spot Bitcoin ETFs.
He said,
“We also need to study the latest international changes and policy adjustments because they are crucial for the development of the digital economy.”
Thus, as cryptocurrency adoption continues to rise and the sector evolves, it will be intriguing to observe how these developments unfold and what implications they hold for the future.
