The cryptocurrency market has been experiencing an exciting bullish trend recently, with Bitcoin’s value climbing to unprecedented levels daily. As the digital currency approaches the significant milestone of $100,000, the market is seeing a noteworthy increase in exchange-traded fund (ETF) inflows. In a remarkable development, U.S.-based spot Bitcoin ETFs have reported an astonishing $3.1 billion in inflows within just one week, setting a new benchmark for crypto investment products.
Record $3.13 Billion Added in Seventh Straight Week of Inflows
Major global crypto funds, managed by renowned firms such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares, have experienced a phenomenal seventh week of continuous net inflows, amounting to $3.13 billion. This marks a new record for the highest inflow within a single week. During the period from November 18-22, spot Bitcoin ETFs saw a record-breaking week with net inflows soaring to $3.13 billion, a 102% increase from the previous week’s $1.67 billion inflows.
These substantial inflows have propelled the year-to-date total to new heights, with funds under management reaching a record $153.3 billion. This growth follows a recent surge in Bitcoin’s price, as highlighted by James Butterfill, CoinShares’ Head of Research, in a Monday report. The report noted, “Year-to-date inflows now stand at a record $37 billion, driven primarily by Bitcoin, far surpassing the debut of U.S. gold ETFs, which attracted a mere $309 million in their first year.”
Last week, U.S. spot Bitcoin ETFs led the way in net weekly inflows, accumulating an unprecedented $3.38 billion. Of this, BlackRock’s IBIT product significantly contributed $2.05 billion.
ETF Volume Increases as BTC Nears the $100K Mark
As of November 22, BlackRock’s iShares Bitcoin Trust (IBIT) remains at the forefront with net assets totaling $48.95 billion and cumulative inflows reaching $31.33 billion. Meanwhile, the Grayscale Bitcoin Trust ETF, holding $21.61 billion in net assets, has seen over $20 billion in outflows since its inception.
In the United States, the market experienced a notable $3.2 billion inflow, while Germany, Sweden, and Switzerland saw outflows of $40 million, $84 million, and $17 million respectively, as investors opted to sell their holdings at recent high prices. Conversely, Australia, Canada, and Hong Kong witnessed positive movements with inflows of $9 million, $31 million, and $30 million respectively.
Bitcoin itself attracted $3 billion in fresh investments, even as rising prices led to $10 million being invested in products betting against Bitcoin. For the month, this marks the highest inflow since August 2022, totaling $58 million.
Since last Thursday, Bitcoin has been trading between $95,000 and $99,000. Its initial attempt to breach the $100,000 mark fell short, primarily due to reduced trading activity from institutional investors over the weekend. However, this week’s favorable entry points could turn the market bullish for Bitcoin, supported by rising demand from both retail and institutional investors. This scenario presents a strong likelihood of surpassing the $100K resistance.
