Bitcoin Continues to Attract All the Inflows With Traders Eyeing A BTC Price Jump to $100,000

For the week ending October 15, another $80 million flowed into digital asset investment products, according to CoinShares data.

With these new inflows, total assets under management have reached their record level at $72.3 billion, surpassing the May peak of $71.6 bln.

Polkadot (DOT) and Cardano (ADA) continued to see inflows, this time of $3.6 mln and $2.7 mln respectively. DOT 1.80% Polkadot / USD DOTUSD $ 6.85
$0.121.80% Volume 280.6 m Change $0.12 Open $6.85 Circulating 1.15 b Market Cap 7.91 b 1 y Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows 1 y SBI Holdings to Launch Japan’s First Crypto Fund; Including BTC, ETH, DOT, LINK, LTC, XRP & BCH 1 y Solana Unaffected by Price Jitters while Bitcoin, Ether, Polkadot, and Cardano Post Outflows ADA 2.47% Cardano / USD ADAUSD $ 0.40
$0.012.47% Volume 400.39 m Change $0.01 Open $0.40 Circulating 34.61 b Market Cap 13.78 b 1 y Bitcoin Is Back Above $51k and Ether $4,100 as The Cryptocurrency Market Goes Green 1 y Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows 1 y Solana (SOL) Bucks the Trend, Along With Tron (TRX), by Recording Highest Inflows After Bitcoin (BTC): Report

Ethereum (ETH) had yet another week of minor outflow at $1 mln; however, these flows are not significant enough to define a trend yet. ETH 1.89% Ethereum / USD ETHUSD $ 1,671.09
$31.581.89% Volume 8.39 b Change $31.58 Open $1,671.09 Circulating 122.37 m Market Cap 204.5 b 1 y Coinbase Predicts Substantial Growth of Newer L1 Chains & Institutionalization of Regulated DeFi 1 y A Possible Crypto Recovery Moving Into New Year, Risk-on Sentiments Send The Stock Market to Another Record High 1 y The Sandbox Game Is Migrating to Ethereum Sidechain Polygon and Launching A DAO in 2022

Much like the last time, Bitcoin has taken the reins back and is leading the inflows. Accounting for most inflows at $70 million, Bitcoin has now recorded the 5th consecutive week of inflows.

However, these weekly inflows remain much lower than that seen in the first quarter of 2021, when there was much greater participation by US investors. But “the recent decision by the SEC to allow a futures-based ETF in the United States could prompt further significant inflows in the coming weeks as US investors begin to add positions,” wrote James Butterfill, investment strategist at CoinShares.

$BTC is up 20% on the ETF trade. CME OI is up ~50%, stablecoin margined OI is flat, coin margined OI increase hasn't outpaced price by much. Quarterly baisis stands at 15% (high but not too high). Perps funding is barely above the base line. Indicating $BTC has plenty room higher

— Alex Krüger (@krugermacro) October 19, 2021

Bitcoin price actually climbed past $63,150 on Monday on the back of the reports of the first Bitcoin futures exchange-traded fund (ETF) in the US by asset manager ProShares to start trading today.

Having entered into historically bullish Q4 and currently facing last resistance at $64k “above which a breakout will target $100,000,” Rich Ross, technical strategist at Evercore ISI, said, “The fourth quarter offers fertile ground for the most speculative.”

Bets are also heating up for $100k with “The favored options contracts [on bitcoin] appear to be call options with strike prices above $100,000 … expiring at the end of the year,” noted data provider Glassnode in its weekly report. Moreover, the “open interest in call options dwarfs that in put options, aligning with the overall bullish market sentiment.”

3/ Perpetuals offer another litmus test on the market. Normally, a sign of an overheated market would be ‘perp’ funding rates surging erratically

Current funding rates still look compressed when compared to early 2021, suggesting worries about excessive leverage may be premature pic.twitter.com/L24ZEOjBOe

— Delphi Digital (@Delphi_Digital) October 18, 2021

ProShares plans to start the fund on NYSE, said its CEO Michael Sapir in an interview.

“ETFs mean that this year Bitcoin interest could see several billions of dollars come under management which should keep the entire space buzzing,” Edward Moya, senior market analyst at Oanda Corp., wrote in a note.

Bitcoin bull Tom Lee, the co-founder of Fundstrat Global Advisors, also said that the ETF could attract over $50 billion in inflows in its first year, given the hype around it.

However, to Noelle Acheson, head of market insights at Genesis Global Trading, there could be a lack of as much monetary demand for this product as the market seems to be signaling, though “It’s another big step in the convergence between traditional and crypto markets.”