For the first time, Bitcoin (BTC) exchange-traded funds (ETFs) in the United States have surpassed $100 billion in net assets as of November 21, according to Bloomberg Intelligence data.
The explosive growth of Bitcoin ETFs began with the introduction of spot BTC ETFs in January and has been further fueled by renewed investor confidence following the pro-crypto victory of President-elect Donald Trump in the November 5 elections.
Bryan Armour, Morningstar’s director of passive strategies research, attributed the November surge to a more optimistic outlook for Bitcoin’s future. “Trump’s win has boosted performance and attracted over $5 billion in inflows to BTC ETFs this month,” he told.
Currently, Bitcoin ETFs collectively manage approximately $104 billion, putting them on track to overtake gold ETFs, which hold around $120 billion in assets as of November 21, according to Bitcoin Archive.
“Bitcoin ETFs are nearing milestones, with 97% of the assets required to surpass Satoshi Nakamoto’s holdings and 82% of the way to overtaking gold ETFs,” said Eric Balchunas, a Bloomberg Intelligence ETF analyst, in a November 21 post on X.
Leading the charge is BlackRock’s iShares Bitcoin Trust (IBIT), which has amassed $30 billion in net inflows since its launch. Fidelity’s Wise Origin Bitcoin Fund (FBTC) follows, drawing over $11 billion in investor interest this year, according to Bloomberg data.
The cryptocurrency market has rallied significantly since Trump’s election victory, with many believing his presidency could support the industry. Bitcoin’s spot price has surged to over $96,000 as of November 21, marking a nearly 120% gain in 2024, according to Google Finance.
Eric Balchunas noted that November 6 saw IBIT’s highest trading volume ever, coinciding with Trump’s win. The next day, IBIT reported $1.1 billion in inflows after briefly experiencing two days of outflows totaling $113.3 million, based on Farside data.
Market analysts predict Bitcoin could reach between $100,000 and $150,000 per coin in the coming months, MV Global stated.
Interestingly, BlackRock’s IBIT has already outpaced its gold ETF counterpart in assets under management, despite being introduced less than a year ago.
Investors are increasingly turning to Bitcoin and gold amid economic uncertainty and geopolitical tensions, viewing these assets as a safeguard against currency debasement, according to a JPMorgan report from October 3.
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