Spot Bitcoin ETFs End Week with $766M Inflows as Market Holds Steady

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As a seasoned crypto investor with a decade of experience navigating the digital currency landscape, I can confidently say that the recent surge in demand for Bitcoin-focused ETFs is nothing short of extraordinary. The growing institutional appetite for these funds, fueled by President-elect Donald Trump’s pro-crypto stance, is a testament to the maturing of the crypto market and its increasing integration into traditional finance.

Bitcoin-focused U.S. exchange-traded funds (ETFs) are experiencing unprecedented interest, driven by President-elect Donald Trump’s pledge to ease regulatory hurdles in the crypto sector. On December 5, these investment tools recorded an impressive $766 million in a single day’s inflow, setting a new high for the week and pushing the weekly influx to $2.35 billion, as per data from SoSoValue.

Institutional Appetite Surges

The surge of attention towards these investment funds suggests an increasing eagerness among speculators to invest in cryptocurrency following Trump’s victory on November 5. Throughout his campaign, the President-elect expressed a commitment to fostering the industry by establishing clear regulatory guidelines and investigating the possibility of Bitcoin being recognized as a reserve asset.

As a researcher, I’ve observed that Trump’s supportive view towards cryptocurrencies has instilled a sense of trust within the digital asset community. This confidence has drawn in traditional investors, who are more inclined to acquire market participation through Exchange-Traded Funds (ETFs), rather than holding the assets directly.

Yesterday, I found myself among a group of investors who collectively invested an impressive $770 million into BlackRock’s iShares Bitcoin Trust (IBIT). This acquisition made IBIT the standout ETF for the day, outperforming its peers significantly. As per SoSoValue’s data, the cumulative net asset value of IBIT now stands at a staggering $34 billion.

BlackRock, through its robust Exchange-Traded Fund (ETF) portfolio, holds about 3% of all the circulating Bitcoin available today. This company’s Bitcoin ETFs, which have been drawing substantial investment even during unfavorable market conditions, have accumulated over $50 billion in market capitalization since their launch.

In addition to BlackRock’s IBIT, other cryptocurrency funds such as the Fidelity Wise Origin Bitcoin Fund (FBTC) and ARK 21Shares Bitcoin ETF (ARKB) also saw significant interest from investors on Thursday, with $47 million and $12 million being invested in each respectively.

Bitcoin Hits $100K Milestone

As more investors embrace Bitcoin ETFs, it’s happening simultaneously with Bitcoin surpassing the predicted $100,000 mark in value. Just a few days ago, this leading cryptocurrency, known for its large market size, achieved an unprecedented high of $103,000, shattering the $100,000 psychological barrier.

Bitcoin’s story started back in 2008 when an anonymous author published a whitepaper about it, and the first version of this groundbreaking digital money was introduced to the world in 2009. Nowadays, it has firmly established itself as a key player within the global financial landscape, providing avenues for economic self-reliance.

Market analysts believe that Bitcoin’s price will keep rising. Peter Brandt, a well-known commodity trader, forecasts that Bitcoin could reach $150,000 by August 2025. Furthermore, Standard Chartered, a major global bank in the UK, envisions Bitcoin reaching $150,000 by the end of this year, fueled by the escalating interest in ETFs.

According to the bank, a rapid increase in the use of Bitcoin Exchange-Traded Funds (ETFs) is likely to drive up the value of Bitcoin to unseen highs.

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2024-12-06 12:36