In a remarkable surge, spot Bitcoin exchange-traded fund (ETF) inflows soared by over 580% this week. An analyst has drawn parallels between current market trends and the behaviors observed among ‘whales’ during the lead-up to the explosive rally in 2020.

During the past week, inflows into a total of 12 spot Bitcoin ETFs reached an impressive $2.13 billion, following a sustained six-day streak of positive inflows. This significant milestone marks the first occasion since March 2024 that weekly inflows into Bitcoin ETFs have exceeded the $2 billion benchmark.

Furthermore, total net inflows across all Bitcoin ETFs have skyrocketed to a record $20.94 billion, a remarkable achievement that took gold ETFs several years to reach, as highlighted by Bloomberg analyst Eric Balchunas. In contrast, Bitcoin products managed to reach this milestone in less than a year, underscoring the growing mainstream interest in Bitcoin as an asset class.

The peak of weekly inflows occurred on October 14, with a total of $555.86 million flooding into the ETFs. However, by October 18, the influx had moderated slightly, dropping to $273.71 million, according to data from SoSoValue. This fluctuation illustrates the dynamic nature of investor sentiment in the cryptocurrency market.

Interestingly, there were no negative flows observed in any of the funds on the last trading day, with ARK 21Shares’ ARKB leading the charge with significant inflows. Below is a summary of inflow figures for various funds:

• ARK 21Shares’ ARKB: $109.86 million, achieving a remarkable 7-day inflow streak.
• BlackRock’s IBIT: $70.41 million, securing a 5-day inflow streak.
• Bitwise’s BITB: $35.96 million.
• VanEck’s HODL: $23.34 million.
• Fidelity’s FBTC: $18.0 million, continuing a strong 6-day inflow streak.
• Invesco’s BTCO: $16.11 million.
• Funds such as Franklin Templeton’s EZBC, Wisdom Tree’s BTCW, Grayscale’s GBTC and BTC, as well as Hashdex’s DEFI, recorded no inflows.

Intensifying Whale Accumulation: A Bullish Sign?

The recent inflows into Bitcoin (BTC) products indicate a robust demand from both retail and institutional investors. Coupled with these inflows, a notable accumulation pattern has emerged among cryptocurrency whales, prompting speculation about future market movements.

According to an observation from CryptoQuant author Woominkyu, the Bitcoin whale ratio on spot exchanges mirrors the conditions seen in July 2020, shortly after the COVID crash. His chart illustrates a major Bitcoin rally that began around this time, suggesting that whales might be positioning themselves for yet another substantial price increase. (Refer to the chart below.)

Similarly, analyst Ki-Young Ju emphasized another layer of accumulation among newer whale wallets. In a post on October 16, he noted that new whale wallets, averaging less than 155 days in coin age, have collectively reached an impressive total of 1.97 million BTC. (Refer to the updates below.)

Whales, often dubbed as “smart money,” tend to make calculated decisions by purchasing during market dips and holding through volatile periods. Their strategic actions can provide valuable insights into potential market trends, as they typically position themselves ahead of significant price movements.

As the recent uptick in whale accumulation has sparked excitement and optimism about an imminent rally, several market analysts envision a potential new all-time high for Bitcoin. The upcoming U.S. presidential elections have drawn particular attention as a possible catalyst for this movement.

Pseudonymous trader Crypto Raven highlighted that polling data shows increasing prospects for Republican candidate Donald Trump to clinch victory in the November elections, a scenario that could provide the necessary momentum for Bitcoin to soar to new heights. As Raven enticingly suggested, “if everything unfolds smoothly, we could aim for the moon.”

On a more optimistic note, Bitwise Chief Investment Officer Matt Hougan predicts that Bitcoin could ultimately hit six figures. This forecast is not solely based on the ensuing elections but also considers the surge in institutional demand alongside various macroeconomic factors.

At the time of writing, Bitcoin, the flagship cryptocurrency, was trading at $68,280, reflecting an impressive 8.5% increase over the past week.

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