- Bitcoin ETF inflows have surpassed $47 billion as of October 2
- Geopolitical tensions, including the Israel-Iran conflict, are affecting Bitcoin’s price
- iShares Bitcoin Trust (IBIT) remains the largest Bitcoin ETF by market capitalization
Inflows into Bitcoin ETF hit an all-time high of more than $47 billion cumulative as of October 2, partly the result of strong performance by key Bitcoin ETFs that include the likes of iShares Bitcoin Trust, or IBIT; Grayscale Bitcoin Trust, or GBTC; Fidelity Wise Origin Bitcoin Fund, or FBTC; and the ARK 21Shares Bitcoin ETF, or ARKB.
With ongoing geopolitical tension, the prospects for Bitcoin have grown somewhat clouded, despite the continued building steam in the ETF market, and investors are becoming increasingly concerned.
Bitcoin ETF Inflows
As per Coinglass information, the market capitalization of all Bitcoin ETFs has reached around $59.03 billion, while AUM is at about $50.39 billion. The largest among them, iShares Bitcoin Trust, changes hands currently at $35.13 with a market capitalization of approximately $22.55 billion.
This makes it one of the few tracking funds that has a high turnover rate of 6.89% but a rather low expense ratio of 0.25%, which is favorable for investors willing to add Bitcoin exposure.
The next in line and one of the strong contenders in the Bitcoin ETF space is the Grayscale Bitcoin Trust, which changes hands at about $49.12 with a market capitalization of $13.65 billion. However, GBTC has a relatively lower turnover of 1.5% with an expense ratio of 1.5%, which might look less enticing to some investors when compared to its rivals.
While Bitcoin ETFs have gained significant momentum of late, recent geopolitical news has affected the general cryptocurrency market. The deteriorating relations between Israel and Iran, especially after the ballistic missile attack by Iran targeting Israel, have cast doubt over the stable price of Bitcoin.
Bitcoin has fallen 6.05% in the last 24 hours and changes hands at $61,205.43, reflecting a loss of 4% from its high. Currently, the market capitalization of Bitcoin stands at a whopping $1.2 trillion, depicting a very turbulent market due to geopolitical causes.
Conclusion
Though it may still remain a fact that heavy inflows into Bitcoin ETFs remain a sure signal of growing importance within the financial market, this news about the Israel-Iran conflict has painted uncertainty on the cryptocurrency ecosystem, exerting downward pressure on the price of Bitcoin.
This added geopolitical tension will be of interest to investors who want to see it move and determine the future of Bitcoin and related ETFs at a time when nobody can predict the conditions of global markets. Despite these challenges, Bitcoin ETFs have always had their place as a necessary tool for exposure to Bitcoin: the opportunities and risks of a shifting market.
