European investors push $105B into US Bitcoin ETFs this year

European investors have allocated a record $105 billion into U.S. Bitcoin (CRYPTO:BTC) exchange-traded funds (ETFs) so far this year, marking an all-time high. 

According to Eric Balchunas, a senior ETF analyst at Bloomberg, the inflows reflect growing interest from Europe in U.S.-focused ETFs. 

Balchunas noted on X that “flows into U.S.-focused ETFs by locals in Europe is now at a record $105 billion YTD,” adding that Asia has also funneled record amounts into these funds. 

This surge in capital comes as Bitcoin remains just below the $70,000 mark, last touched in July 2024. 

Despite the massive European investment, Bitcoin has struggled to reclaim this psychological level, according to Bitstamp data. 

However, analysts believe the continued ETF inflows could eventually drive Bitcoin to new all-time highs. 

Bitcoin’s hashrate, a key indicator of network security, has also reached a record high, highlighting the increasing costs of mining and the network’s growing strength. 

On Oct. 21, Bitcoin ETFs saw net positive inflows for six consecutive days, with Farside Investors reporting that cumulative on-chain Bitcoin holdings by ETFs surpassed $66.3 billion, representing nearly 5% of Bitcoin’s current circulating supply. 

While Bitcoin has yet to see significant price movement above $69,500, Bitfinex analysts suggest that the effects of these large ETF inflows may be delayed. 

They explained, “large ETF inflows have a muted impact for a few days and then the market reverses lower once the aggression from spot market buyers fades.” 

As European and global interest in U.S. Bitcoin ETFs grows, market observers are closely watching for a potential breakout. 

At the time of writing, the Bitcoin price was $67,139.24.