Crypto Markets Rally as Bitcoin ETFs Surpass $20 Billion Milestone

Dogecoin has soared 15% in the past 24 hours as Bitcoin approaches $69,000.

By: Mehab Qureshi • October 18, 2024

Crypto markets edged higher on Friday as U.S. spot Bitcoin ETFs crossed $20 billion in total net inflows.

Bitcoin (BTC) led the charge, rising 2% to $68,880. Ethereum (ETH) followed with a 1% gain to $2,650, while other major cryptocurrencies like Solana (SOL) and Polkadot (DOT) posted modest gains of 2%.

The top performer of the past 24 hours, however, was memecoin Dogecoin (DOGE), which surged 15% on the back of news linked to billionaire entrepreneur Elon Musk.

Musk, speaking at a Pennsylvania town hall on Thursday, shared additional details about his proposed "Department of Government Efficiency (D.O.G.E.).” The event was aimed at encouraging early voting in Pennsylvania, a crucial battleground state in the upcoming U.S. elections.

Bitcoin ETFs Cross $20 Billion Milestone

U.S.-based spot Bitcoin ETFs crossed $20 billion in total net flows on Oct. 17, according to data from Farside Investors.

According to Bloomberg’s senior ETF analyst Eric Balchunas, the $20 billion figure is the "most difficult metric to grow" for ETFs.

“Bitcoin ETFs have crossed $20 billion in total net flows (the most important number, most difficult metric to grow in ETF world) for the first time after a huge week of $1.5 billion,” Balchunas said.

The milestone is even more impressive considering that it only took the Bitcoin ETFs ten months to reach $20 billion in net flows. In contrast, gold ETFs took about five years to achieve the same inflows.

The growth of Bitcoin ETFs reflects the growing institutional appetite for Bitcoin as an investment vehicle. Over the past four days, the ETFs have recorded inflows totaling $1.8 billion.

Stock Market Surges

U.S. stock markets also rose on Friday.

The Dow Jones Industrial Average was flat, while the S&P 500 and Nasdaq 100 rose 0.4% and 0.7%.

Across the pond, the European Central Bank (ECB) cut interest rates for the third time this year. European markets traded marginally lower on Friday, with the pan-European Stoxx 600 down 0.06%.