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In summary
- Institutional investors drove record inflows into Bitcoin and Ethereum ETFs, with $3.85 billion in one week.
- BlackRock ETFs led with $3.2 billion, bringing its crypto assets under management to $56.7 billion.
- The United States dominated the market with $3.6 billion in receipts, followed by Switzerland with $160 million.
Bitcoin and Ethereum spot ETFs have seen unprecedented appetite from institutional investors this year, and the numbers, particularly in December, continue to impress.
A record $3.85 billion flowed into digital asset funds last week, fueled by insatiable demand on Wall Street, according to a CoinShares report released Monday.
BlackRock’s iShares ETFs accounted for $3.2 billion of those inflows, bringing its total value of crypto assets under management to $56.7 billion.
Inflows into Ethereum products also hit a new all-time high of $1.2 billion last week, surpassing volumes seen when the U.S. Securities and Exchange Commission (SEC) first approved ETH spot ETFs in July, according to CoinShares reported.
The United States has established itself as the main market for digital asset investment products, representing $3.6 billion in total inflows.
Switzerland came in a distant second with $160 million, followed by Germany, Canada and Australia.
All of this comes amid speculation that ETFs tracking the value of smaller cryptocurrencies, such as XRP or Solana, could be given the green light to launch after Donald Trump returns to the White House in January.
Last week, it was confirmed that Wall Street ETF issuers now collectively own more Bitcoin than anyone, including the Cryptocurrency‘s creator, Satoshi Nakamoto.
The total market capitalization of Bitcoin ETFs is now $109 billion, according to data from CoinGlass, more than MicroStrategy and Binance combined. MicroStrategy is the largest corporate holder of Bitcoin in treasury, while Binance is the leading cryptocurrency exchange by trading volume.
However, an analysis by CryptoQuant suggests that all of this buying activity has been outpaced by sales from long-term Bitcoin holders, who have sold 827,783 BTC in the last 30 days.
This could explain why Bitcoin has struggled to maintain momentum above $100,000 since hitting the all-time high price for the first time last week. At the time of writing, the price of Bitcoin is near $97,000 after falling below the six-figure value on Monday.
BTC’s growth — which eventually led to a market capitalization above $2 trillion and made it more valuable than the Australian dollar — has been widely attributed to institutional interest through ETFs rather than retail investors.
Trump’s imminent return to the White House, fueled by a series of pro-Bitcoin promises, is also playing a role. Now he has named businessman David Sacks as “cryptocurrency czar” and tapped Paul Atkins to head the SEC. Industry veterans view Atkins as a crypto-friendly candidate slated to end the hostile regime imposed during current SEC Chairman Gary Gensler’s tenure.
Independent financial commentator Chris Skinner, who runs The Finanser blog, told Decrypt that the president-elect “has made cryptocurrencies respectable.”
“The result is that ETFs will flourish over the next four years, as will the entire cryptocurrency sector,” he wrote in an email. “This is not a Bitcoin play, but a play on the institutionalization of cryptocurrencies, which libertarians never wanted but was inevitable.”
Edited by Sebastian Sinclair.
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