Bitcoin News Today: Bitcoin ETFs Attract $35 Billion Inflows This Year, Driving Price Surge

Deutsche Bank has identified a significant trend in the cryptocurrency market, highlighting that U.S.-listed bitcoin ETFs have attracted over $35 billion in inflows this year alone. This substantial inflow has pushed the cumulative totals past a significant milestone, indicating a growing institutional interest in bitcoin. The bank predicts that by mid-2025, the cumulative inflows into U.S. Bitcoin ETFs will exceed $50 billion, with BlackRock's iShares Bitcoin Trust being a notable contributor to this trend.

The surge in bitcoin's price, which has recently surpassed $123,000, is attributed to several converging trends. One of the key drivers is the political momentum gained by cryptocurrencies in Washington. The House of Representatives has initiated a "Crypto Week," with key bills such as the CLARITY Act, the GENIUS Act, and the Anti-CBDC Surveillance State Act set for a vote. These legislative efforts aim to provide a market framework, regulate stablecoins, and prevent the Federal Reserve from issuing a central bank digital currency directly to individuals. Globally, regulatory frameworks like Europe’s MiCA legislation and explorations by the UK and China are further legitimizing cryptocurrencies in the eyes of institutions and regulators.

The approval of spot bitcoin ETFs by the SEC in early 2024 marked a turning point for the market. Since then, investors have poured over $50 billion into bitcoin ETFs, significantly bolstering bitcoin’s liquidity and bringing price stability. The introduction of regulated options trading and the April 2024 halving event, which reduced bitcoin issuance by 50%, have further tightened supply, supporting upward price pressure. Adoption of bitcoin is also growing, with 17% of U.S. retail investors holding the cryptocurrency as of June. On the corporate side, 31% of all circulating bitcoin is held by company treasuries, indicating a broader acceptance of bitcoin as a store of value.

Macroeconomic factors are also contributing to the rally. The dollar index has declined nearly 10% year to date, and new U.S. deficit projections tied to tax legislation have pushed investors toward alternative stores of value like bitcoin and gold. This shift is driven by the perception of bitcoin as a hedge against inflation and dollar risk, further fueling its price surge. The trend is not limited to traditional crypto bulls; consumer companies are also diversifying their balance sheets with bitcoin to mitigate these risks.