On November 21, a notable benchmark was reached in the world of cryptocurrency: Bitcoin exchange-traded funds (ETFs) in the U.S. surpassed a staggering $100 billion in net assets for the very first time, as reported by Bloomberg Intelligence. This leap forward follows the launch of spot Bitcoin ETFs earlier in January, firmly establishing Bitcoin as the frontrunner in the ETF landscape. The excitement surrounding Bitcoin has seen a significant boost, particularly after Donald Trump’s electoral victory on November 5—his perceived support for the cryptocurrency sector resonated with investors.
Growing Assets Under Management
Currently, the combined assets under management (AUM) of Bitcoin ETFs sit at approximately $104 billion. With gold ETFs hovering around $120 billion, Bitcoin ETFs are on the verge of overtaking them, as noted by Bitcoin Archive. Eric Balchunas, an ETF analyst at Bloomberg Intelligence, highlighted that Bitcoin ETFs are on the cusp of achieving remarkable feats. They are just 3% away from dethroning Satoshi Nakamoto as the largest holder of Bitcoin and have reached 82% of the AUM needed to surpass gold ETFs. Leading the charge is BlackRock’s iShares Bitcoin Trust (IBIT), having garnered an impressive $30 billion in net inflows since the year began. Following closely is the Fidelity Wise Origin Bitcoin Fund (FBTC), which has attracted more than $11 billion in inflows in 2024 alone, as reported by Bloomberg.Market Dynamics and Price Surge
The cryptocurrency market witnessed a significant uptick right after Trump’s election victory. On November 21, the price of spot Bitcoin surged above $96,000, marking an almost 120% increase since the start of 2024, based on data from Google Finance. On November 6, IBIT experienced its highest trading volume ever, as investors flocked to cryptocurrencies in the wake of the election results. The very next day, IBIT recorded an impressive $1.1 billion in inflows, bouncing back into the green after experiencing two days of outflows that totaled around $113.3 million. Looking ahead, MV Global has forecasted that Bitcoin could soar to a value between $100,000 and $150,000 per coin. Remarkably, BlackRock’s IBIT, which only launched in January, has already exceeded the asset total of the firm’s gold ETF.Investment Sentiment amid Geopolitical Tensions
As geopolitical tensions grow, many investors are gravitating toward both gold and Bitcoin, participating in what’s been termed a “debasement trade.” This strategy reflects a cautious mindset, as investors brace for potentially challenging scenarios, a sentiment echoed in a JPMorgan report released on October 3. “`htmlSource: Cointelegraph.com
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