Crypto Funds Break Records: Over $5.9 Billion Flows Into Global ETFs
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In a watershed for digital finance, global cryptocurrency exchange-traded funds shattered records with $5.95 billion in net inflows last week, coinciding with Bitcoin’s blistering climb past $122,000. This bonanza, tracked by CoinShares, eclipses the prior peak of $4.2 billion in March, underscoring surging investor zeal amid “Uptober” euphoria and institutional FOMO, even as traditional markets grapple with U.S. shutdown tremors.
The deluge spanned continents and assets. U.S. spot Bitcoin ETFs, spearheaded by BlackRock’s IBIT at $2.3 billion, captured 65% of flows, pushing total AUM past $120 billion. Fidelity’s FBTC added $1.4 billion, while Ethereum products like Grayscale’s ETHE netted $1.1 billion as ETH stabilized at $4,600. Europe’s UCITS-compliant funds, post-MiCA, absorbed €1.2 billion, and Asia’s Hong Kong approvals unlocked $900 million for multi-chain baskets. “This is validation: crypto’s no longer speculative,it’s strategic allocation,” beamed ARK Invest’s Cathie Wood in a Reuters interview, her ARKW ETF swelling 20% YTD.
Bullish sentiment is the jet fuel. Bitcoin’s 15% weekly surge to new highs, defying shutdown-induced volatility, drew parallels to 2021’s ETF debut frenzy. On-chain analytics from Glassnode show exchange inflows spiking 30%, with whales accumulating 20,000 BTC. Institutional fingerprints abound: pension behemoth CalSTRS disclosed a 1.5% crypto tilt, and Saudi Aramco’s venture arm eyed $500 million in blockchain pilots. “Amid gold at $2,800 and Treasuries wobbling, BTC’s the uncorrelated king,” posited JPMorgan’s Nikolaos Panigirtzoglou, revising AUM forecasts to $300 billion by 2027.
Yet, altcoin undercurrents bubble. While BTC dominance holds at 58%, inflows trickled to SOL ($250 million) and LINK ($150 million) ETFs on cross-chain hype. Technicals gleam: the Crypto Fear & Greed Index hit 85 (extreme greed), with RSI divergences hinting at sustained upside.
Skeptics temper the triumph. Regulatory fog from the shutdown delays IRS crypto tax clarity, and concentration risks loom,the top five ETFs control 80% of assets. ESG critics decry proof-of-work’s carbon footprint, though Ethereum’s post-Merge efficiency mitigates. Trading volumes roared to $180 billion daily, dwarfing Nasdaq’s crypto futures.
Broader adoption accelerates: Visa’s USDC settlements hit $10 billion monthly, and PayPal’s PYUSD yields 5% APY. As private payrolls disappoint at 98,000, crypto’s decoupling shines,S&P up 0.8% weekly, but BTC’s 5% outpaces. “ETFs are the Trojan horse for mass adoption,” Wood quipped. With Bitcoin eyeing $150,000, these record flows aren’t a spike,they’re the new normal, cementing crypto’s throne in portfolios worldwide.
