U.S. Spot Bitcoin ETFs Close to 1 Million BTC Holdings as Traders Eye November Events

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The U.S. Bitcoin exchange-traded funds (ETFs) may soon reach a significant milestone. Traders and investors expect key November events, such as the U.S. election and a potential interest rate cut, to drive inflows. 

This could boost the positive sentiment in the broader crypto market, potentially affecting prices.

U.S. Bitcoin ETFs Close to Major Milestone  

Bitcoin ETFs in the U.S. are nearing 1 million BTC in total holdings. These funds currently hold 976,893 Bitcoin worth over $66.2 billion. According to SoSoValue, this represents almost 5% of Bitcoin’s total market cap, which is valued at $1.34 trillion. 

To reach the 1 million BTC mark, ETF issuers need an extra 23,107 Bitcoin this week. At current prices, that means they will need $1.55 billion in net inflows.

Around $301 million in daily net inflows will be required for this to happen. Analysts believe this is possible, especially given the current market conditions.

Crypto analyst Alessandro Ottaviani noted, “In the last two weeks, $3 billion has flowed into Bitcoin ETFs.”

In the last two weeks we had $3B net inflow from the Bitcoin Spot ETFs.

If this pace continues through November, ATH will be inevitabile

— Alessandro Ottaviani (@AlexOttaBTC) October 27, 2024

He also added that if this pace continues in November, reaching an all-time high (ATH) is inevitable. These ETFs have gained traction due to increased demand from investors, especially those seeking exposure to Bitcoin without directly holding it. 

November Tailwinds Could Fuel Bitcoin Inflows  

Several upcoming events in November could significantly impact the crypto market and fuel Bitcoin ETF inflows. The U.S. presidential election, scheduled for November 5, is expected to play a crucial role. 

Historically, elections have influenced financial markets, including cryptocurrencies. For instance, Bitcoin saw a significant surge in November 2020, shortly after the last U.S. election.

As shown in its chart, the coin rose from around $13,700 to over $61,000 before declining. This marked a surge of more than 340% in a few weeks. Another critical factor is the Federal Reserve’s potential interest rate cut. 

The Federal Open Market Committee (FOMC) will meet on November 6 and 7, and many expect a 25-basis-point rate cut. The CME Group’s Fedwatch tool estimates a 94.7% chance of this happening.

Lower interest rates typically reduce financial pressure on consumers, boosting market sentiment, including over cryptocurrencies.

According to an X user, Russia is set to lift its Bitcoin mining ban on November 1, which could further support Bitcoin’s price.

🇷🇺Russia seems to be acting to keep up with the US. Nation-level #Bitcoin FOMO is heating up.

Their entry will boost the hashrate, strengthen network fundamentals, and diversify miner politics.

🇨🇳Chinese mining pools control 57% of the BTC hash rate, while the 🇺🇸US has 35%. https://t.co/n0pZNNvb0d pic.twitter.com/F1UATlCqo9

— Ki Young Ju (@ki_young_ju) August 8, 2024

This Russian move would help decentralize the Bitcoin network, making it more secure for everyone. 

Henrik Andersson, chief investment officer at Apollo Capital, shared his thoughts on these events. 

He mentioned, “If Donald Trump wins the election, the momentum in risk assets could drive Bitcoin to $100,000 by the end of the year.” 

Institutional Investors and the Road Ahead  

Institutional interest in Bitcoin ETFs has been vital in driving recent inflows.

For example, Emory University, based in Atlanta, recently invested $15.1 million in the Grayscale Bitcoin Mini Trust, according to a recent filing with the U.S. Securities and Exchange Commission (SEC). 

Other institutional players are also increasingly using BTC ETFs to gain exposure to the leading cryptocurrency. If the current pace continues, the milestone of 1 million BTC held by ETFs could be reached sooner than expected. 

Looking back at previous trends, Bitcoin tends to rally after halving events. The last halving occurred in April 2024, and many analysts believe Bitcoin’s price could rise in the coming months. 

In November 2020, following the May 2020 halving, Bitcoin surged by nearly 43%. A similar price movement is possible, especially with the November 2024 election and potential Federal Reserve actions.

Bitcoin is trading at $67,700, slightly below the $70,000 mark. However, it has strong support at $65,000. 

Analyst Luca noted in an X post, “There is a massive pile of lings sitting just under 65K, which is also a significant support level.”

Some market participants are optimistic that Bitcoin could soon break through this resistance level, particularly if November’s events increase inflows.

With the potential for interest rate cuts, the U.S. election, and Russia’s mining policy shift, the crypto market could see further growth in the weeks ahead.