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In summary
- Spot Bitcoin ETFs in the US recorded $676 million in inflows on Tuesday, led by iShares Bitcoin Trust with $693.25 million.
- The total capitalization of these funds reached $104.25 billion, comparable to 1.1 million BTC, similar to Satoshi Nakamoto’s estimated portfolios.
- Analysts attribute the boom to a favorable regulatory environment and the Republican victory in the US, boosting institutional confidence in cryptoassets.
US spot Bitcoin ETFs recorded nearly $676 million in inflows on Tuesday, nearly double the $353.67 million reported on Monday, according to data from SoSoValue.
At the time of publication, the total net assets held by the asset managers behind the US Spot Bitcoin ETF contracts stands at $104.25 billion. This is equivalent to approximately 1,076,609.7 BTC, close to the estimated 1.1 million BTC held in wallets belonging to Bitcoin creator Satoshi Nakamoto.
BlackRock’s iShares Bitcoin Trust ETF (IBIT) led the pack, with $693.25 million of net capital inflows on the trading day. The Fidelity Wise Origin Bitcoin Fund followed with inflows of $52.17 million.
Despite a fairly positive trading day, ARK 21Shares Bitcoin ETF (ARKB) lost capital on Tuesday, with $93.5 million in outflows during the trading day.
The Grayscale Bitcoin Trust ETF saw no net flow of assets into or out of the fund yesterday. After controlling almost the entire US Bitcoin Spot ETF when it was converted from a closed-end fund, it lost its dominance and only controlled less than a quarter of the market by the end of August. Now this contract holds close to $20.6 billion, compared to the market leader IBIT’s holdings of almost $48.5 billion.
Behind the Bitcoin ETF “boom”
Bitcoin ETFs are on a roll right now, with a record $7.6 billion in monthly net inflows during November.
Alex Obchakevich, founder of Obchakevich Research, told Decrypt that he attributes the “significant increase in investments” to the recent victory of Donald Trump and the Republican Party in the US elections. He argued that “Trump’s position is the most pro -cryptocurrencies possible”, increasing market confidence and attracting institutional investors.
“The growth was also greatly influenced by the regulator’s approval of funds, which freed investors’ hands to interact with Bitcoin ETFs in a regulated environment,” he concluded.
Valentin Fournier, digital asset intelligence specialist at market intelligence firm BRN, noted that Tuesday’s “robust” Cryptocurrency ETF inflows led Ethereum spot ETFs to report inflows of $133 million.
Obchakevich suggested that the increased interest in cryptocurrency ETFs may allow the crypto market to capture new sectors “and go beyond the crypto community.” He highlighted that “we already have a recent case study of Tether, where a financial transaction was made to purchase oil using USDT.”
“We are on the verge of big changes, where cryptocurrency ETFs are an important part of a big puzzle,” he concluded.
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