Samara Cohen, head of the BlackRock ETF, told CNBC that most of the demand for Bitcoin is coming through investment tools such as ETFs, rather than direct purchases from crypto exchanges.
He highlighted that 80% of Bitcoin ETF buyers are direct investors and 75% are first-time buyers of BlackRock's iShares products.
All 11 Spot Bitcoin ETFs have a market cap of more than $63 billion, with nearly $20 billion in inflows. Over the past five business days, the Spot Bitcoin ETF has seen over $2.1 billion in net inflows, with BlackRock accounting for half of that.
Bitcoin ended the third quarter at its highest level since July, trading above $68,300 and rising 140% year-over-year. Cohen also emphasized that while the initial goal was to educate ETF investors about cryptocurrencies, it ended up educating crypto investors about the benefits of ETFs.
New Bitcoin ETF options
On Friday, the U.S. Securities and Exchange Commission (SEC) granted early approval to 11 exchange-traded funds (ETFs) to list and trade options tied to the spot price of Bitcoin on the New York Stock Exchange (NYSE). gave.
This is an important step forward for institutional investors, as Bitcoin options provide a flexible and efficient tool to hedge and expand their exposure to Bitcoin.
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These options require less capital than trading physical assets and offer investors a way to hedge against speculation and risks associated with Bitcoin price fluctuations in a regulated market.
Bloomberg analyst Eric Balchunas commented on this new historic moment for the crypto market. He said the SEC recently approved the same for Nasdaq, so this news is not a big surprise, even though it is positive news for crypto in general.
However, Balciunas said the new options still require CFTC approval, so actual listing will take longer.
Bitcoin returns exceed expectations
According to CCData, Bitcoin ended the third quarter with a modest 1.00% gain, recovering after falling below $50,000 in August. Heading into the fourth quarter, market sentiment is bullish, supported by historical data that shows the average fourth-quarter return since 2014 is 49.9%.
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This optimism is reinforced by changes in market dynamics following the Federal Reserve's 50 basis point interest rate cut. The reduction led to increased market activity, with total Bitcoin open interest increasing 6% to nearly $27 billion.
Bitcoin's price soared above $62,000 reflecting the strong bullish reaction, and altcoins followed suit, outperforming volatile US stocks.
Since interest rate cuts often signal macroeconomic weakness after a multi-year tightening cycle, this outperformance in crypto markets suggests that liquidity injections may follow.
If further economic stimulus is needed, risk-on assets like Bitcoin are expected to benefit most, and the upward momentum is likely to continue in the short term.
