Bitcoin ETFs see third straight day of inflows as BTC clocks new ATH

by

As an analyst with over two decades of experience in the financial markets, I must say that the recent surge in Bitcoin ETF inflows is nothing short of remarkable. Having closely watched the evolution of cryptocurrencies and their underlying technologies, it’s fascinating to see how far we’ve come since the early days of Bitcoin’s inception.

As a researcher, I observed an intriguing trend on November 20: U.S.-based Bitcoin exchange-traded funds experienced their third consecutive day of inflows. A significant sum of approximately $773.47 million flowed into these funds, coinciding with Bitcoin reaching a record high above $97K.

As a crypto investor, I’ve noticed some exciting developments over the past few trading days. Data from SoSoValue shows that over $1.8 billion has flowed into U.S. Bitcoin ETFs, an encouraging sign of growing optimism in the cryptocurrency market. This momentum is particularly significant as we approach the administration of President-elect Donald Trump, who has pledged to make the United States a global leader in crypto, potentially paving the way for improved regulatory clarity and positioning our country as the “crypto capital of the planet.

BlackRock leads the BTC ETF pack

Most of the investments made on November 20 went to BlackRock’s IBIT ETF, with a massive single-day inflow of $626.52 million. This new addition has pushed the total net inflows for BlackRock’s IBIT to over $30 billion, further cementing its position as a leading figure in the Bitcoin ETF market.

Other exchange-traded funds (ETFs) also experienced significant investments. Specifically, Fidelity’s FBTC ETF gained $133.94 million, while ARK‘s ARKB and 21Shares’ BITB recorded more restrained inflows of $9.25 million and $3.77 million respectively.

While data on Grayscale’s Bitcoin Mini Trust remains unavailable, other Bitcoin ETFs stayed neutral on the day. Total trading volume for Bitcoin ETFs reached $5.71 billion on Nov. 20, marking a sharp increase from $4.78 billion the previous day.

Bitcoin climbs toward $100K

On November 20th, Bitcoin’s price experienced a significant rise during Asian trading sessions, peaking at approximately $97,836. This digital currency has witnessed an impressive growth of over twice its initial value this year alone, and in the two weeks following President Trump’s election win, it has surged by an astonishing 40%.

Enthusiasts believe that Donald Trump’s supportive attitude towards cryptocurrencies, combined with an increasing number of lawmakers favorable to digital assets within Congress, could spark a new golden age for the crypto sector.

After the recent election, there has been an influx of more than $4 billion into U.S.-based Bitcoin ETFs. This week, BlackRock’s IBIT options saw a robust start, with investors placing more calls (bullish bets on the price of Bitcoin) compared to puts.

Ethereum ETFs face outflows

Despite Bitcoin’s rising trend, Ethereum spot ETFs experienced five consecutive days of withdrawals on November 20, with approximately $30.29 million being taken out. Fidelity’s FETH was the largest contributor to these outflows, losing $30.75 million, followed by Grayscale’s ETHE which had an outflow of $16.29 million, adding up to a total loss of $3.29 billion since its launch.

Notably, while other Ethereum-focused ETFs stayed unchanged, BlackRock’s ETHA ETF stood out, pulling in investments totaling $16.74 million.

As I write this analysis, Bitcoin (BTC) has managed to climb by 5.6% over the past 24 hours, currently standing at a price of $97,659. On the other hand, Ethereum (ETH) seems to be holding steady in its value, trading around $3,107.

Read More

2024-11-21 10:04