European Investors Pour Record $105 Billion into US Bitcoin ETF, BTC Price Stalls Below $70K

European investors have funneled over $105 billion into US Bitcoin ETFs in 2024, a record high. Despite strong inflows, Bitcoin price remains stuck below the $70,000 mark, last visited in July.

European investors have broken records this year by allocating a staggering $105 billion into spot Bitcoin exchange-traded funds (ETFs) in the United States. Despite this capital influx, Bitcoin has been unable to reclaim the $70,000 psychological threshold, which it last touched in July 2024.

According to Eric Balchunas, a senior ETF analyst at Bloomberg, these record European ETF inflows were shared in an October 21 post on X (formerly Twitter), highlighting the growing appetite for Bitcoin ETFs. The significant capital flows from Europe set a new all-time high for Bitcoin ETF investments in 2024.

Bitcoin ETF Inflows Fuel Optimism

As Bitcoin’s price hovers just below the $70,000 mark, many believe that these record inflows could eventually push BTC to a new all-time high. Balchunas noted that US Bitcoin ETFs have played a pivotal role in Bitcoin’s recent price movements, accounting for approximately 75% of the new capital that helped Bitcoin surpass $50,000 back in February 2024.

However, despite these impressive inflows, data from Bitstamp shows that Bitcoin has been stuck in a tight range under $69,500 since July 29. While many expected ETF inflows to push BTC higher, market forces appear to be delaying the expected price surge.

Bitcoin Hashrate Reaches All-Time High

In addition to the record inflows into Bitcoin ETFs, Bitcoin’s hashrate — the total computing power securing the network — reached an all-time high on October 21. This increased security in the network has driven up BTC mining costs, further strengthening Bitcoin’s fundamentals even though its price has been slow to reflect these developments.

Balchunas also pointed out that US Bitcoin ETFs recently surpassed $20 billion in total net flows, a significant milestone that has taken years to achieve in other sectors like gold-based ETFs. For context, it took gold ETFs more than five years to reach similar milestones in net inflows.

Price Stuck Despite Positive Milestones

Despite these multiple ETF-related milestones, Bitcoin’s price remains stalled. Analysts at Bitfinex suggest that this stagnation is due to a delayed reaction in the spot market from ETF inflows. The analysts explained that while large ETF inflows generally lead to upward price movement, the effects often take a few days to materialize. Once the initial buying pressure from ETF-driven demand fades, the market may reverse course.

The order books also suggest that crypto traders are using ETF flows as exit liquidity for their trades, which could explain why Bitcoin’s price has struggled to maintain momentum above the $69,500 level.

Bitcoin ETF on a Winning Streak

Despite the price stagnation, Bitcoin ETFs have seen six consecutive days of positive net inflows, according to data from Farside Investors. On October 14, US Bitcoin ETFs bought $555 million worth of Bitcoin, causing a 5% increase in Bitcoin’s price — from $62,450 to a daily high of $66,479.

Additionally, Bitcoin ETFs now collectively hold more than $66.3 billion in onchain Bitcoin, representing 4.9% of Bitcoin’s circulating supply, according to Dune analytics. This trend indicates that ETFs are steadily increasing their influence over the market, despite the slow price movements.

What’s Next for Bitcoin Price?

As European and US investors continue to pour capital into Bitcoin ETFs, many analysts are optimistic about a potential breakout. However, given the current market dynamics and traders’ use of ETF inflows for liquidity, it remains uncertain how soon Bitcoin will break through the $70,000 level.

The third quarter of 2024 has proven that while institutional interest in Bitcoin is stronger than ever, the market remains unpredictable. Investors are closely watching Bitcoin’s price action, hoping that these record ETF inflows will finally lead to a new all-time high.

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