Amid successful growth in the US markets, Bitcoin ETF investments have reached remarkable heights, indicating growing interest in these financial instruments.
Growth in Bitcoin ETF Investments
According to data from the SoSoValue platform, exchange-traded funds (ETFs) based on Bitcoin recorded $1.67 billion in net inflows between November 11 to 15, 2024. This marks the sixth consecutive week of positive inflows, cumulatively totaling $8.95 billion since October 11. The iShares Bitcoin Trust (IBIT) from BlackRock leads the sector, with historical inflows amounting to $29.3 billion. In contrast, the Grayscale Bitcoin Trust has experienced significant outflows amounting to $20.3 billion since the launch of Bitcoin ETFs in January. The total net assets of spot Bitcoin ETFs are now $95.4 billion, representing 5.27% of the total Bitcoin market capitalization, estimated at $1.8 trillion.
A Boom in the Crypto Market
Interest in Bitcoin ETFs has risen amidst a spectacular increase in the cryptocurrency's price, which surpassed the $90,000 mark for the first time on November 12, setting a new historical record at $93,400 the next day. This reflects a growing maturity in the crypto market and increased confidence among institutional investors in this asset class, despite its inherent volatility.
Institutional Investors and ETFs
Leading institutional investors are intensifying their positions in Bitcoin, such as billionaire Paul Tudor Jones, who significantly increased his investment in BlackRock's ETF in the third quarter with $130 million. He is now among the top ten holders of IBIT, alongside giants like Goldman Sachs, which increased its holdings by 71% to reach $710 million. The spillover effect is also being felt in other crypto financial products, notably Ethereum ETFs, which recorded $515 million in weekly inflows, marking their third consecutive week of positive flows.
The sustained demand for Bitcoin ETF indicates a growing maturity in the crypto market and increased confidence among institutional investors in this asset class, despite its volatility.
