Bitcoin spot ETF records 477 million dollars net inflow in one day…Alternative investment rises amid weakening gold demand

U.S. Bitcoin spot exchange-traded funds (ETFs) recorded a net inflow of 477 million dollars in one day, showing a recovery in institutional investor sentiment. After the market volatility in virtual assets (cryptocurrencies) that followed U.S.-China trade tensions, investors are increasingly choosing Bitcoin as a new risk-adjusted asset instead of gold.

On the 22nd (local time), according to The Block, U.S. Bitcoin spot ETFs recorded a total net inflow of 477.2 million dollars the previous day. Nine of the 12 funds saw inflows, and BlackRock's 'IBIT' accounted for the largest share with 210.9 million dollars. 'ARKB', co-managed by Ark Invest and 21Shares, recorded a net inflow of 162.8 million dollars, and Fidelity's 'FBTC' recorded a net inflow of 34.15 million dollars.

Ethereum spot ETFs also saw a net inflow of 141.6 million dollars. Fidelity's 'FETH' led with 59 million dollars, and products from BlackRock, Grayscale, and VanEck also continued to see inflows.

Nick Ruck, director at LVRG Research, said, "This net inflow shows that institutional investor sentiment is stabilizing after recent market volatility," and evaluated that "virtual assets are regaining trust as a means of portfolio diversification."

Trading volume also showed strength. The daily trading size of Bitcoin ETFs was 7.41 billion dollars, and monthly trading volume in October has been maintained between 5 billion and 9.78 billion dollars. This is more than twice the level of September's 2 billion to 4 billion dollars. Ruck added, "As participation by traditional financial institutions expands, liquidity and risk appetite are increasing," and "institutional funds are moving decisively into virtual assets as a return·hedge instrument."

There is also a substitutive flow with the gold market. That day, the spot price of gold plunged 5.9%, recording the largest one-day drop since 2020. Ruck said, "As gold demand has peaked, investors are viewing virtual assets as alternative risk-adjusted assets," and "the possibility of 'catch-up buying (catch-up trade)' for Bitcoin is increasing."

Meanwhile, according to The Block's price page, Bitcoin was trading at 108,450 dollars, up 0.18% over the past 24 hours, and Ethereum was trading at 3,869 dollars, down 0.19%.