As we approach the end of 2024, U.S. spot Bitcoin exchange-traded funds (ETFs) are making remarkable strides. With an asset valuation hovering around $120 billion, they’re now trailing closely behind gold ETFs, which stand at about $125 billion.
Institutional Interest in Bitcoin
The surge in institutional interest in Bitcoin has been a defining trend in 2024, highlighted by its growing presence on corporate balance sheets and the robust performance of Bitcoin ETFs. The assets under management (AUM) for Bitcoin ETFs are increasingly comparable to those of gold ETFs—especially when we take into account leveraged ETFs. The activity on Bitcoin futures at the Chicago Mercantile Exchange (CME) underscores ongoing momentum as the year wraps up.
CME Trading Activity
The CME is buzzing with trading activity, with futures open interest approaching record levels and currently sitting at 212,635 BTC in active contracts. Recent developments show a significant increase in the basis trade premium, now at 16.4%, the highest rate since November 2023. This growth indicates that traders anticipate continued movement in the market as the year comes to a close.
Consistent Net Inflows
In the last month, U.S. spot Bitcoin ETFs have attracted consistent net inflows, totaling $6.5 billion since November 27, as reported by Farside. The expanding basis trade premium, along with rising open interest contracts at the CME, indicates that many of these inflows may be linked to cash-and-carry trading strategies.
As the year concludes, the race between Bitcoin and gold ETFs remains captivating, highlighting the evolving dynamics in the investment space and the growing appeal of digital assets.
Source: Coindesk
