CryptoQuant founder and CEO Ki Young Ju, on Monday highlighted that demand for Bitcoin spot ETFs has been robust, with significant net inflows at price levels above $61,000.
What Happened: According to Young Ju, the sustainability of this trend hinges on Bitcoin (CRYPTO: BTC) maintaining its price above this key threshold.
"As long as the BTC price holds above $61,000, ETF demand should remain steady, in my opinion," he stated in a post on X on Monday.
QCP Capital provided additional context on the market's current state, emphasizing caution amid political uncertainty, stating that vice president Kamala Harris and former president Donald Trump are locked in a tight race as odds on Polymarket have moved closer to actual poll estimates.
While Polymarket odds currently favor Trump at 55%, this is a significant decline from 66% a week prior, reflecting a more balanced electoral outlook.
This uncertainty has kept leveraged perpetual positioning in check, with figures dropping from $30 billion to $26 billion across exchanges, signaling cautious sentiment.
Also Read: Bitcoin Could Hit $90,000 If Trump Wins, Hold $50,000 Floor Under Harris: Bernstein
QCP Capital further remarked on the sideways price action over the weekend, suggesting a potential build-up before a major move: "So, is this the calm before a break from the multi-month range and push toward all-time highs? The options market definitely thinks so, as we've seen an increase in topside positioning with substantial buying of end-Nov $75,000 Calls since last Friday."
The report highlighted that election-date options positions have been rising, with implied volatility above 87%, even as realized volatility sits at 40%.
Meanwhile, the surge in spot ETF inflows comes as major financial institutions ramp up their involvement in the Bitcoin market.
"BlackRock's (NASDAQ:IBIT) recorded the highest weekly netflows since March 2024, with $2.11 billion flowing into the Bitcoin market," Young Ju said.
Fidelity's (BATS:FBTC) also reported strong inflows, particularly when Bitcoin's price touched the $73,000 level, demonstrating growing interest from institutional investors.
What's Next: The potential implications of this sustained demand will be a focal topic at Benzinga's Future of Digital Assets event on Nov. 19.
The event will host industry leaders who will analyze the effect of ETF inflows on the crypto market and discuss broader trends in digital asset investment.
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