In recent weeks, the cryptocurrency market has experienced a significant bullish trend, with Bitcoin leading the charge by reaching new price heights almost daily. As Bitcoin approaches the pivotal $100,000 milestone, there has been a remarkable increase in the inflow volume for exchange-traded funds (ETFs). U.S.-based spot Bitcoin ETFs have witnessed an extraordinary surge, recording an impressive $3.1 billion in inflows within just one week, marking a new pinnacle for crypto investment products.
Record Inflows: $3.13 Billion Added in the Seventh Straight Week
Globally recognized crypto funds, overseen by industry giants such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares, have celebrated a noteworthy seventh consecutive week of net inflows. These inflows have reached an unprecedented $3.13 billion, setting a new benchmark for the highest weekly inflow on record.
From November 18-22, spot Bitcoin ETFs experienced a record-breaking week, with net inflows skyrocketing to $3.13 billion. This figure represents a substantial 102% increase from the previous week’s inflows of $1.67 billion. Such robust inflows have propelled the year-to-date total to new heights, with assets under management at these funds reaching an all-time high of $153.3 billion. This surge coincides with a recent rally in Bitcoin’s price, as noted by James Butterfill, CoinShares’ Head of Research, in a report released earlier this week.
The report highlights, “Year-to-date inflows now stand at a record $37 billion, driven primarily by Bitcoin, far surpassing the initial performance of U.S. gold ETFs, which attracted just $309 million in their first year.” Last week, U.S. spot Bitcoin ETFs topped the charts in net weekly inflows, amassing a remarkable $3.38 billion, with BlackRock’s IBIT product contributing a substantial $2.05 billion to this figure.
ETF Volume Surges as Bitcoin Approaches the $100K Threshold
As of November 22, BlackRock’s iShares Bitcoin Trust (IBIT) remains the leading ETF with net assets totaling $48.95 billion and cumulative inflows reaching $31.33 billion. In contrast, the Grayscale Bitcoin Trust ETF, holding $21.61 billion in net assets, has seen more than $20 billion in outflows since its inception.
The U.S. market witnessed a significant influx of $3.2 billion, while Germany, Sweden, and Switzerland experienced outflows of $40 million, $84 million, and $17 million respectively, as investors capitalized on recent high prices. On the other hand, Australia, Canada, and Hong Kong observed more favorable trends, with inflows of $9 million, $31 million, and $30 million respectively.
Meanwhile, Bitcoin attracted $3 billion in new investments. At the same time, rising prices led to $10 million being invested in products betting against Bitcoin, with a total of $58 million for the month, marking the highest inflow since August 2022.
Since last Thursday, Bitcoin has been trading between $95,000 and $99,000. Its initial attempt to reach the $100,000 mark faced challenges, primarily due to reduced trading activity from institutional investors over the weekend. However, this week’s favorable entry points may prove bullish for Bitcoin, driven by increasing demand from both retail and institutional investors. Consequently, there is a strong potential for Bitcoin to break through the $100K resistance level.
