Record-Breaking Inflow of Bitcoin ETPs in Europe – Could This Propel BTC Price to $30,000? A Report

• BlackRock’s move to launch a Bitcoin fund led to a significant capital inflow into European cryptocurrency-related ETPs, with June witnessing a peak since March 2022.
• Following BlackRock’s lead, financial giants such as Fidelity, Invesco, and WisdomTree have been inspired to submit comparable applications.

BlackRock Sparks a European Crypto ETP Revival

The financial behemoth, BlackRock’s recent strategy to introduce a Bitcoin fund within the US landscape, has left ripples across the European financial arena. Particularly, the Exchange-Traded Products (ETPs) connected to digital currencies in Europe have enjoyed an unprecedented rush of capital.

A Resurgence in Inflows

European ETPs with cryptocurrency affiliations reported a commendable escalation in net inflows, reaching a pinnacle of €150 million during June. This success hadn’t been mirrored since the high of March 2022, based on the figures gleaned from Morningstar’s data archives. This newfound enthusiasm sharply contrasted the €100 million outflows observed in May, only to be followed by another €60 million inflow in the succeeding month of July.

This European trend is in harmony with global trajectories. Capturing the months of June and July, a combined influx totaling $610 million (translating to approximately €560 million) was documented by the analytic group, CoinShares.

Unraveling the genesis of this revitalization points directly to BlackRock’s strategic move. In June, the investment giant approached a US regulatory body with a proposal to roll out a spot bitcoin ETF. Such an announcement from BlackRock, an industry titan, inevitably galvanized the market. Before this, global crypto ETPs were ensnared in a cycle of net outflows for nine successive weeks, culminating in an aggregate outflow of $400 million, as delineated by CoinShares.

Spot ETFs, for the uninitiated, offer a more direct representation, mirroring the ebb and flow in bitcoin’s price. This stands in contrast to ETFs aligned with bitcoin futures contracts, which trace the price trajectory of these futures. The US regulatory framework has greenlit several ETFs of the latter kind.

BlackRock’s pioneering move, indicative of their trust in Bitcoin’s potential, has ushered in a cascade of similar ambitions. Financial powerhouses like Fidelity, Invesco, and WisdomTree have since been motivated to pen their own applications, signaling a broader institutional acceptance of cryptocurrency’s gravitas in the investment universe.