In recent weeks, the cryptocurrency market has exhibited a strong bullish trend, with Bitcoin’s price climbing to unprecedented levels almost daily. As Bitcoin inches closer to the noteworthy $100,000 benchmark, there has been a remarkable increase in the inflow volume for Exchange-Traded Funds (ETFs). Notably, spot Bitcoin ETFs based in the United States have witnessed an extraordinary $3.1 billion in inflows within a single week, establishing a new record for crypto investment products.
Record $3.13 Billion Added in Seventh Straight Week of Inflows
Prominent global crypto funds, managed by leading industry entities such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares, have achieved a significant milestone. They have recorded a seventh consecutive week of net inflows, totaling an impressive $3.13 billion, setting a new benchmark for the highest inflow within a week.
During the period from November 18 to 22, spot Bitcoin ETFs experienced a groundbreaking week with net inflows soaring to $3.13 billion. This represents a remarkable 102% increase compared to the previous week’s inflows of $1.67 billion. Such robust inflows have driven the year-to-date total to unprecedented levels, with assets under management at these funds reaching an all-time high of $153.3 billion. This surge followed a recent increase in Bitcoin’s price, as highlighted by James Butterfill, CoinShares’ Head of Research, in a report released on Monday.
The report stated, “Year-to-date inflows now stand at a record $37 billion, driven primarily by Bitcoin, significantly outpacing the debut 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, accumulating an unprecedented $3.38 billion, with BlackRock’s IBIT product contributing a substantial $2.05 billion.
ETF Volume Increases as BTC Nears the $100K Mark
As of November 22, BlackRock’s iShares Bitcoin Trust (IBIT) continues to lead with net assets totaling $48.95 billion and cumulative inflows reaching $31.33 billion. Conversely, the Grayscale Bitcoin Trust ETF, which holds $21.61 billion in net assets, has experienced more than $20 billion in outflows since its inception.
In the United States, a significant $3.2 billion entered the markets, 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. In contrast, Australia, Canada, and Hong Kong experienced more positive trends, with inflows of $9 million, $31 million, and $30 million, respectively.
Meanwhile, Bitcoin attracted $3 billion in new investments. Simultaneously, the 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 fluctuating between $95,000 and $99,000. Its initial attempt to breach the $100,000 level was unsuccessful, primarily due to reduced trading activity from institutional investors over the weekend. However, this week’s favorable entry points might trigger a bullish trend for Bitcoin, fueled by increasing demand from both retail and institutional investors. Consequently, there is a potential for Bitcoin to break through the $100K resistance.
