The Incredible Numbers Behind The Rise Of Bitcoin ETFs

Spot Bitcoin ETFs continue their dazzling ascent in the American financial markets, with weekly net inflows reaching $1.7 billion from November 11 to 15. This performance is part of an uninterrupted sequence of six weeks of positive inflows, bringing assets under management to a record level of $95.4 billion.

Bitcoin ETFs Maintain Six Consecutive Weeks of Positive Inflows

Exchange-traded funds (Bitcoin Spot ETFs) recorded net inflows of $1.67 billion during the week of November 11 to 15, 2024, according to data from the SoSoValue platform.

This performance is part of an exceptional dynamic that began on October 11, with cumulative inflows now reaching $8.95 billion over six weeks.

The iShares Bitcoin Trust (IBIT) from BlackRock has established itself as the uncontested leader in the sector, totaling $29.3 billion in historic inflows. In contrast, the Grayscale Bitcoin Trust has experienced significant outflows of $20.3 billion since the launch of spot Bitcoin ETFs in January.

This wave of investments has propelled the total net assets of spot Bitcoin ETFs to $95.4 billion, now representing 5.27% of the total Bitcoin market capitalization, estimated at $1.8 trillion.

A Booming Market

The enthusiasm for Bitcoin ETFs has manifested alongside a spectacular rise in the price of the crypto, which first surpassed the threshold of $90,000 on November 12, before setting a new historical record at $93,400 the next day.

Leading institutional investors are intensifying their exposure to Bitcoin, such as billionaire Paul Tudor Jones, who significantly increased his position in BlackRock’s ETF in the third quarter with an investment of $130 million.

He is now among the top ten holders of IBIT, alongside giants like Goldman Sachs, which has 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 weekly inflows of $515 million, marking their third consecutive week of positive flows.

The sustained demand for Bitcoin ETFs reflects a growing maturity in the crypto market and increased confidence among institutional investors in this asset class, despite the inherent volatility of the sector.