An analyst has shared how European investors have warmed up to the US crypto ETFs, pouring over $100 billion into the spot Bitcoin ETFs.
The spot Bitcoin ETFs in the US, operating since early 2024, have become a roaring success. However, an interesting insight regarding the spot Bitcoin ETFs has also emerged. A senior analyst with Bloomberg has revealed how European investors pumped $105 billion into the US crypto ETFs.
Crypto inflows into the ETFs have been a big enabler of the Bitcoin rally of 2024. The US crypto ETFs have also helped propel new ETFs across regions like Asia. Meanwhile, crypto inflows through ETFs have been favorable for traditional investors who preferred such products instead of directly investing through exchanges and other avenues.
These ETFs can be bought and sold through traditional brokerage accounts, making them more accessible to a wider range of investors compared to directly purchasing crypto. This accessibility can help to democratize crypto investing and reduce the barriers to entry.
Another benefit of spot crypto ETFs is their potential to offer greater regulatory oversight. ETFs are subject to strict regulatory frameworks, including SEC oversight. This can provide investors with a sense of security and protection, as it ensures that the funds are being managed in a transparent and compliant manner. Additionally, regulatory oversight can help to reduce the risk of fraud and market manipulation.
All these reasons have contributed heavily to the popularity of the US crypto ETFs in 2024.
Case in point, despite a small correction in Bitcoin’s price on October 21, investors poured more money through the ETFs. This could also be a way for the investors to ‘buy the dip.’ On October 21, during the correction, the BlackRock ETF scooped up inflows worth over $300 million. All the ETFs cumulatively posted around $294 million in inflows on October 21.
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