Spot Bitcoin exchange-traded funds (ETFs) had their fourth-best week in terms of investment inflows, while China-focused ETFs faced record outflows, signaling continued optimism for Bitcoin’s global adoption.
U.S.-based Bitcoin ETFs saw inflows totaling $2.42 billion during the week of November 18–22, making it their fourth-largest week of investments since their January debut, according to data from Dune. These growing inflows followed the news of Donald Trump’s victory in the 2024 presidential election, which helped trigger a significant price rally for Bitcoin, including a record-breaking monthly candle that saw BTC surpass $99,000 for the first time.
In stark contrast, China-based ETFs suffered their largest outflow in history, with over $2 billion withdrawn during the same week, as reported in a November 22 post by the Kobeissi Letter. Despite China’s efforts to stimulate the economy with pandemic-like measures, recent data points to worsening economic conditions within the country.
Bitcoin soars to $99,000 amid growing concerns over China’s economy
Historically, Bitcoin has seen price surges when traditional financial systems face challenges, as was the case during the collapse of Silicon Valley Bank and the voluntary closure of Silvergate Bank. The March 2023 U.S. banking crisis was a key factor behind last year’s Bitcoin bull run, according to BitMEX co-founder Arthur Hayes.
Meanwhile, the largest China ETF, the iShares China Large-Cap ETF (FXI), saw a record outflow of $984 million over the past week, marking the fifth consecutive week of negative withdrawals. This is happening despite China’s government injecting massive stimulus into the economy in an attempt to quell investor fears about a potential economic downturn. According to the Kobeissi Letter, Chinese consumer sentiment is at a historic low, with consumer confidence down by approximately 50 points over the past three years.
Bitcoin price soars to $99,800 amid growing ETF inflows
While Bitcoin price continued its rally, surpassing $99,800 on November 22 and recording a 9.5% gain for the week, the FXI saw a decline of over 3%. Bitcoin’s monthly chart showed a 48% increase, while the FXI fell by more than 7%, according to TradingView data. During this period, Bitcoin ETFs also surpassed the $100 billion milestone in net assets.
With record stablecoin flows of $9.7 billion into exchanges during November, many believe that Bitcoin could reach $100,000 before the month ends. However, some remain cautious, noting that the rally might not be sustainable. Notably, Kris Marszalek, CEO of Crypto.com, has cautioned that the crypto market may need to go through a deleveraging phase before Bitcoin can break the $100,000 threshold.
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