Bitcoin ETF Inflows Soar 102% in One Week, Boosting Institutional Demand
Bitcoin ETF – Bitcoin (BTC) exchange-traded funds (ETFs) in the United States have reached a significant milestone, recording $3.38 billion in weekly inflows for the week of Nov. 18–22. This marks an impressive 102% increase compared to the previous week’s inflows of $1.67 billion, according to SoSoValue, a leading crypto tracking platform. These record inflows signify continued investor enthusiasm amid Bitcoin’s parabolic rally, as the cryptocurrency surged to near its all-time high.
Record Inflows for Bitcoin ETFs
The latest data from SoSoValue confirms that this is the largest weekly inflow for spot Bitcoin ETFs in history. This influx is also part of the seventh consecutive week of positive flows into the Bitcoin ETF market. As of November 22, BlackRock’s iShares Bitcoin Trust (IBIT) remains the dominant player in the sector, with $48.95 billion in net assets and cumulative inflows totaling $31.33 billion. However, despite holding $21.61 billion in net assets, Grayscale’s Bitcoin Trust ETF has faced significant outflows, exceeding $20 billion since its launch, suggesting a different investor sentiment towards its structure.
Bitcoin ETF Inflows Outpace Gold ETFs
The surge in Bitcoin ETF inflows has outpaced other asset classes, including gold. Data from CoinShares, a prominent digital asset investment firm, reveals that Bitcoin ETFs have already surpassed $37 billion in inflows for the year, a stark contrast to gold ETFs, which attracted just $309 million in their first year of trading. The rapid accumulation of funds in Bitcoin ETFs further underscores the growing institutional interest in the asset, driven by its ongoing price rally.
However, the overall Bitcoin ETF inflows in the U.S. have been partially offset by outflows from other regions, such as Germany, Sweden, and Switzerland, where some investors have opted to take profits following the recent Bitcoin price highs. Despite this, CoinShares estimates that the total Bitcoin ETF inflows for the week stood at $3.12 billion, underscoring the sustained demand for exposure to Bitcoin in the U.S. market.
Bitcoin Price Hits New Highs, Nears $100,000
Amid these record ETF inflows, Bitcoin’s price action has continued to show impressive bullish momentum. On Nov. 22, Bitcoin hit a new all-time high of $99,655, briefly approaching the highly anticipated $100,000 milestone before experiencing a slight correction. As of the latest data, Bitcoin is trading at $98,459, maintaining its position as one of the top-performing assets in the market. Despite not breaking the psychological $100,000 barrier, the ongoing strength of the asset suggests that the next test for Bitcoin will likely be overcoming this level.
Institutional Demand and Short-Bitcoin Products
The surge in Bitcoin ETF inflows has been primarily driven by institutional demand, as large players continue to bet on Bitcoin’s long-term growth. Additionally, Short-Bitcoin products also saw $10 million in inflows during the week, indicating that some investors are hedging against potential downside risks. In addition to the U.S., markets in Australia, Canada, and Hong Kong have collectively contributed approximately $70 million in inflows, signaling global optimism for Bitcoin and its future price trajectory.
What’s Next for Bitcoin and ETFs?
Bitcoin’s trajectory towards $100,000 is likely to remain the focus of traders and investors alike. The current strength in the market, combined with record ETF inflows, suggests that Bitcoin may be in the midst of a broader bullish trend. However, the ability of Bitcoin to break through the psychological barrier of $100,000 remains a key test. As more institutional money flows into Bitcoin, especially via ETFs, the asset is positioning itself to become an even more dominant force in the financial landscape.
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