Weekly Bitcoin ETF inflows resume with $2.73b, analysts eye $200k BTC in 2025

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As a seasoned researcher with a decade-long career in the financial industry and a keen interest in the burgeoning world of cryptocurrencies, I find myself both intrigued and cautiously optimistic about the recent developments in Bitcoin ETFs. The inflows this week, totaling $2.73 billion, are indeed impressive and suggest a growing institutional interest in digital assets.

This week, there was a favorable change for Bitcoin ETFs, as they garnered approximately $2.73 billion in investments. Financial experts anticipate an even stronger surge in growth since Bitcoin recently breached the $100,000 mark.

During the past week, all 12 Bitcoin ETFs experienced an increase in investments, fueled by optimism surrounding a potentially more cryptocurrency-friendly regulatory landscape under President-elect Donald Trump. This optimism stems from his recent appointment of pro-cryptocurrency former federal regulator Paul Atkins as the new SEC chair, replacing Gary Gensler, who had previously shown skepticism towards cryptocurrencies.

On December 5th, the week’s maximum inflows, amounting to $766 million, were reached, coinciding with a 50% increase in daily ETF trading volume. This surge occurred as Bitcoin broke through the challenging $100K barrier, reaching an unprecedented high of $103,679 – a significant achievement that was enthusiastically acknowledged by the crypto community.

On December 6th, the inflow into spot BTC ETFs decreased to $376.59 million, as Bitcoin plummeted under $97,000. This downturn was accompanied by significant market liquidations that totaled more than half a billion dollars in a single day.

ETF inflows

Inflows during the past week totaled approximately $2.73 billion, making it the second most prosperous week for these investment tools, with the week of November 18-22 holding the top spot due to a record inflow of $3.38 billion.

On December 6th, BlackRock’s IBIT saw the largest inflow for the sixth day in a row, totaling approximately $257.03 million. Interestingly, only four out of the twelve funds tracked by SoSoValue recorded inflows based on their data.

Inflows into the remaining ETFs are as follows:

  • Fidelity’s FBTC: $120.17 million.
  • ARK and 21Shares’ ARKB: $24.9 million.
  • Grayscale Bitcoin Mini Trust: $6.75 million.

Yesterday, among all Bitcoin ETFs, Grayscale’s GBTC stood alone as it experienced withdrawals worth $32.3 million, making this its fourth consecutive day of outflows. Over the past five days, a total of $303.5 million has left the fund. In contrast, the other seven Bitcoin ETFs didn’t experience any inflows or outflows during that period.

In spite of a decrease in Bitcoin inflows towards the end of the week, U.S.-based Bitcoin Exchange-Traded Funds (ETFs) have accumulated more than 1.104 million tokens, surpassing Satoshi Nakamoto’s original holding of approximately 1.1 million tokens. This impressive growth occurred within just one year after their initial launch.

It is anticipated by experts that American institutions’ involvement with Bitcoin, particularly via ETFs (Exchange-Traded Funds) and corporate treasuries, will continue to expand, leading the overall digital asset sector towards wider global acceptance.

Alessio Quaglini, the CEO of Hex Trust, proposes that this trend may spark competition among countries to obtain Bitcoin. Meanwhile, Petr Kozyakov, the co-founder and CEO of Mercuryo, shares with crypto.news his view that digital assets are transitioning from being viewed as speculative investments into becoming transformative technologies that are increasingly adopted globally.

Bitcoin might climb to $200K by 2025

Last week, weekly investments into Bitcoin ETFs contributed to driving Bitcoin’s price past the $100,000 threshold. Experts anticipate that this digital currency could reach even higher values in the future.

According to a recent prediction made by Geoff Kendrick, who holds the position of global head of digital assets research at Standard Chartered, it’s likely that Bitcoin will be worth approximately $200,000 by the year 2025.

If Bitcoin (BTC) shows increased adoption by American retirement plans, international sovereign wealth funds, or possibly a U.S. government strategic reserve, our optimism could grow even further, he noted.

Analysts at Bitwise, much like others, have put forth predictions based on growing institutional interest, a shrinking number of Bitcoins available, and the rising fame of Bitcoin ETFs, suggesting these factors are instrumental in the process.

Despite the bullish projections, some industry experts have urged caution.

Mike Novogratz, CEO of digital cryptocurrency bank Galaxy Digital, has issued a caution about possible market adjustments due to Bitcoin’s rising trend. He points out that many market players are heavily leveraged, which could lead to increased market swings.

Chris Burniske, a partner at Placeholder, has recently shared similar warnings, advising investors to be mindful of their anticipations, using the 2021 bull market as a lesson on caution.

Kris Burniske suggests that Bitcoin’s recent jump above $100,000 might not hold in the immediate future. He noted that excessive optimism in 2021 caused Bitcoin to reach $70,000 instead of the projected $100,000. As I write this, Bitcoin is only 0.4% away from reaching $100,000 again, having risen by 1.4% over the last day and currently trading at $99,580.

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2024-12-07 20:24