BlockBeats News, October 6th, despite the Bitcoin treasury company accumulating $1.2 billion worth of Bitcoin last week, analysts believe that Bitcoin’s new all-time high was more driven by inflows into Bitcoin Exchange-Traded Funds (ETFs).
According to data, the Bitcoin treasury companies bought over 6,702 Bitcoins last week, with Japanese investment firm Metaplanet leading the way by adding 5,258 Bitcoins on October 1st alone. In contrast, Bitcoin spot ETFs saw a net inflow of $3.24 billion last week, nearly matching the single-week record set in November 2024.
Quantitative trading firm Kronos Research’s Chief Investment Officer Vincent Liu told Cointelegraph that a key driver of the Bitcoin price increase was ETF inflows. However, he also added that other factors played a role, such as “exchange supply tightness, USD weakness, and macro uncertainty. Strong institutional demand over the weekend further reinforced the market’s bullish momentum.
So far this year, institutional buying of Bitcoin has outpaced miner production. Miners produce an average of around 900 Bitcoins per day, while the financial services company River noted in a September report that enterprises were buying an average of 1,755 Bitcoins per day, and ETFs were buying an average of 1,430 Bitcoins per day. Analysts at Bitfinex predicted in August that the approval of new crypto ETFs could also trigger a new round of altcoin rallies or rebounds, as it could allow investors to have lower-risk exposure to more tokens.
