Bitcoin ETFs may soon cross 1M BTC as traders await November tailwinds.
US spot Bitcoin exchange-traded funds (ETF) could reach a total of 1 million Bitcoin in holdings this week as traders prepare for potential crypto tailwinds in November.
These tailwinds include the US election, the Federal Reserve potentially cutting interest rates and Russia lifting its ban on Bitcoin mining – all in November.
US spot Bitcoin (BTC) ETF issuers currently hold 976,893 bitcoins worth more than $66.2 billion, roughly 5% of Bitcoin's $1.34 trillion market cap as seen by Apollo and Soso Value.
In order to buy the additional 23,107 bitcoins and reach the milestone, ETFs would need to take $1.55 billion in net income (at current prices).
It would take an average of $301 million in daily net income to happen this week.
Source: Nate Gerasi
Bitcoin analyst Alessandro Ottaviani revealed that $3 billion has flowed into the space in Bitcoin ETFs in the past two weeks alone.
“If this pace continues until November, it will be ATH [inevitable]He said.
Key metrics from US spot Bitcoin ETFs. Source: SoSoValue
Bitcoin has rallied for more than several months after a bearish event – the last one occurred in April 2024 – and the results of the November 5 US presidential election could act as a tailwind for Bitcoin.
Following the halving event of May 2020 and the victory of President Joe Biden in 2020, Bitcoin rallied about 43% in November 2020 – and similar price movements regardless of who won, CK Zheng, chief investment officer of crypto hedge fund ZX Squared Capital, previously told Cointelegraph.
But Apollo Capital's chief investment officer Henrik Andersen said the crypto market's rallies are the “big decision” on whether Donald Trump will win.
“If he wins, we believe that BTC in the risk assets could reach $100,000 by the end of the year,” Anderson told Cointelegraph. “Had that been the case, Bitcoin would have made a significant new ATH and made huge headlines around the world.”
Starting in November 2020, Bitcoin will see more monthly gains in December 2020 and February 2024 — the first month after the launch of Bitcoin ETFs.
Some of the latest gains can be attributed to academic institutions, with Atlanta-based Emory University reporting more than $15.1 million in Greyscale Bitcoin Mini Trust, according to an Oct. 25 filing with the U.S. securities regulator.
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With the US Federal Reserve's Federal Open Market Committee scheduled to meet on November 6 and 7, CME Group's FedWatch tool predicts a 94.7% chance of a 25 basis point cut in interest rates.
Price cuts often ease the financial burden on everyday consumers and often have a positive impact on the market – at least in the short term.
Meanwhile, Russia's lifting of the Bitcoin mining ban on November 1 was seen as a major development for Bitcoin, increasing the network's decentralization and security.
For now, Bitcoin is trading at $67,700 – struggling to break through $70,000 but with ample support at $65,000.
“[There is a] Massive long lines below 65K, which is a very important support level,” crypto trader “Luca” posted on October 26 on X.
Lose that and the next support level is exposed at 60K.
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