Digital asset inflows reached a staggering $901 million last week, with Bitcoin accounting for the majority of total inflows. In October, ahead of the US elections in November, BTC turned out to be the favorite for investors this month. On the other hand, Ethereum (ETH) has seen outflows, and altcoins such as Solana and Litecoin have been in the spotlight.
Bitcoin dominates the flow into the virtual currency market
According to CoinShares’ latest report, total inflows into digital asset investment products were $901 million, with inflows accounting for 12% of total assets under management in October. This is the fourth largest monthly inflow in history. Meanwhile, year-to-date inflows have reached $27 billion, nearly triple the previous record high of $10.5 billion set in 2021.
Provided by: CoinShares
As mentioned above, BTC investment products saw a staggering $920 million inflows, with Bitcoin accounting for the bulk of that. This indicates that major companies appear to be buying Bitcoin as the price fell to $65,000 last week. Meanwhile, there was a small outflow of $1.3 million from Bitcoin short products. Vettle Lunde, head of research at K33, said:
“A record year is in the making! Annual net principal flows into BTC investment vehicles surpassed their 2020 peak. In 2024, Bitcoin investment vehicles worldwide will see annual net inflows of 377,000 BTC , surpassing the Grayscale-led 2020 record of 373,000 BTC.”
Bitcoin spot ETFs contributed the bulk of last week’s inflows. In just five days from October 21st to October 25th, the Spot Bitcoin ETF recorded $998 million in inflows. Notably, the BlackRock ETF (IBIT) recorded significant net inflows of $1.15 billion, while the ARK 21Shares Bitcoin ETF (ARKB) faced net outflows of $206 million.
The Spot BTC ETF is approaching a new milestone of holding 1 million Bitcoins, representing nearly 5% of the total BTC supply. This is a significant number considering the fact that this investment product has reached this milestone just 10 months after its launch.
The Spot Bitcoin ETF is currently about 23,000 shy of holding 1,000,000 Bitcoins…
Or almost 5% of the final total supply of Bitcoin.
via @ApolloSat pic.twitter.com/QnrOPr6vPX
— Nate Geraci (@NateGeraci) October 28, 2024
Solana and Litecoin in the spotlight ahead of US election
The altcoin industry has seen a number of developments, including Ethereum (ETH) being put on the back burner as traders no longer consider it a trade for President Trump before the U.S. election. Despite positive market-wide sentiment, Ethereum experienced the largest outflow of all assets last week, totaling $35 million.
In contrast, Solana reported the second-largest inflows, raking in $10.8 million over the same period. Several market analysts expect Solana price growth to continue to $300.
Furthermore, Bitcoin’s competitor Litecoin has seen new market activity in the last week. Currently, Litecoin price is hovering around $70 and is looking at a possible rise to $100.
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Bhushan Akolkar
Bhushan is a FinTech enthusiast with a deep understanding of financial markets. His interest in economics and finance led him to focus on the emerging blockchain technology and cryptocurrency market. He is passionate about continuous learning and stays motivated by sharing the knowledge he gains. In his free time, Bhushan enjoys reading thriller fiction novels and sometimes hones his cooking skills.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
