Bitcoin ETFs Surge with $1 Billion Inflows

As Bitcoin's price approaches the $100,000 milestone, Bitcoin exchange-traded funds (ETFs) saw nearly record inflows of over $1 billion yesterday amid volatile trading conditions.

Record Inflows

The influx came following the launch of options trading on BlackRock’s spot Bitcoin ETF on November 19, after the SEC's approval for options on spot Bitcoin ETFs last month. Notably, BlackRock’s iShares Bitcoin Trust (IBIT) attracted the largest inflows, drawing in just over $608 million on November 21, according to data from Farside Investors.

Meanwhile, the Fidelity Wise Origin Bitcoin Fund (FBTC) attracted over $301 million, while Bitwise’s Bitcoin ETF (BITB) brought in $68 million. Although these figures are historically high, they are still below the record $1.12 billion pulled in by BlackRock’s IBIT on November 7.

Political Influence

The surge in inflows coincides with speculation around Donald Trump's election and his promises to protect crypto mining interests and overhaul regulatory frameworks. Trump's administration is seen as favorable for crypto, potentially driving more investments into Bitcoin ETFs.

Dominance of Bitcoin ETFs

Bitcoin ETFs are increasingly becoming a dominant way for investors to hold Bitcoin. As of November 22, U.S. Bitcoin ETFs hit $100 billion in assets, with a year-to-date flow nearing $30 billion. This positions Bitcoin ETFs as major holders, surpassing Satoshi Nakamoto and representing about 82% of the total value of Gold ETFs.

However, the positive sentiment around Bitcoin ETFs has not translated to Ethereum ETFs, which have seen continuous outflows since November 14, losing $7 million on November 21.