Global Crypto ETFs Surge with $1.2B Inflows, Analyst Explains Why Bitcoin Could Soar in Q4

Net inflows into global cryptocurrency exchange-traded funds (ETFs), managed by major players like BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares, have continued to rise for the third consecutive week, according to data from CoinShares.

These inflows amounted to $1.2 billion, marking the highest in the last ten weeks.

This positive momentum has been driven by "continued expectations of cautious monetary policy in the U.S., along with related price gains, with total assets under management rising by 6.2% last week," said James Butterfill, head of research at CoinShares, in a report published on Monday.

Butterfill added that the potential approval by the U.S. Securities and Exchange Commission (SEC) of a spot Bitcoin ETF by BlackRock could further boost market sentiment, despite trading volumes declining by 3.1% week-on-week.

Spot Bitcoin ETFs in the U.S. recorded net inflows of $1.2 billion last week, with spot Bitcoin funds claiming the lion’s share of these inflows at $1.1 billion, according to data from The Block.

In Switzerland, digital asset investment products attracted $84 million in net inflows, while funds in Germany and Brazil saw outflows of $21 million and $3 million, respectively, during the same period.

Overall, spot Bitcoin ETFs accounted for the majority of net inflows last week, increasing by $1.1 billion globally. Meanwhile, leveraged Bitcoin investment products saw net inflows of $8.8 million, as Bitcoin prices rose by 3.5% over the past week.

Bitcoin to Soar in Q4?

In addition to the ongoing inflows into crypto funds, analysts are also predicting a potentially transformative Q4 for the cryptocurrency market. Wise Advice, a prominent analyst with over 256.4k followers on X (formerly known as Twitter), shared insights on several key developments that could significantly impact the market in the coming months.

According to Wise Advice, major events like the anticipated release of Binance CEO Changpeng Zhao from prison and the outcome of the U.S. presidential election, with Donald Trump as a leading candidate, could introduce considerable political and regulatory changes. These events may influence how global markets, including the crypto space, react to political shifts.

Further, institutional involvement is expected to deepen, with companies such as MicroStrategy planning further Bitcoin acquisitions, signaling ongoing confidence in digital assets despite market volatility. Additionally, a $12 billion stablecoin distribution by FTX could increase liquidity, boosting market stability and enabling larger trades.

The Federal Reserve’s potential rate cuts could attract more investors back to riskier assets like Bitcoin, driving up demand. Meanwhile, global quantitative easing (QE) efforts and Russia's growing role in international crypto trade could open new avenues for crypto adoption, driving prices higher.

Lastly, the implementation of new rules by the Financial Accounting Standards Board (FASB) could facilitate corporate adoption of Bitcoin, further solidifying the asset’s role in institutional portfolios.

With these developments, Q4 is shaping up to be a pivotal period for Bitcoin and the broader crypto market, as Bitcoin is currently trading at $63,849, reflecting a 1.8% decline over the last 24 hours, according to The Block’s data.