Assets in US Bitcoin ETFs surpass $100 billion
Bitcoin exchange-traded funds (ETFs) in the US just hit a major milestone by surpassing $100 billion in net assets for the first time on November 21st. This marks a significant achievement for the cryptocurrency market, with Bitcoin leading the way in ETF investments since the launch of spot BTC ETFs earlier this year.
Investor interest has been on the rise, especially after the election victory of President-elect Donald Trump on November 5th. According to Bryan Armour, director of passive strategies research at Morningstar, the surge in BTC ETF net assets in November can be attributed to a more positive outlook for Bitcoin’s future post-Trump’s win, attracting over $5 billion in inflows.
As of November 21st, BTC ETFs now collectively manage around $104 billion, putting them on track to potentially surpass gold ETFs in net assets, which currently hold roughly $120 billion in assets under management. Eric Balchunas, an ETF analyst at Bloomberg Intelligence, noted that BTC ETFs are now 97% on their way to becoming the largest holder, surpassing gold ETFs by 82%.
Leading the pack is BlackRock’s iShares Bitcoin Trust (IBIT), which has seen $30 billion in net inflows since January. Following closely is the Fidelity Wise Origin Bitcoin Fund (FBTC), with inflows of over $11 billion this year, according to Bloomberg data.
The overall crypto market has seen a surge in activity since Trump’s election victory, as many believe his win will benefit the industry. As of November 21st, the spot price of BTC is trading at over $96,000, marking a nearly 120% increase since the beginning of the year, as reported by Google Finance data.
With Bitcoin expected to potentially reach anywhere between $100,000 and $150,000 per coin, according to MV Global, investors are turning towards both gold and BTC in what is being called a “debasement trade” amid rising geopolitical tensions.
It’s clear that Bitcoin ETFs are making waves in the financial world, and with the increasing interest and positive outlook for the cryptocurrency industry, the future looks promising for BTC investments.