As a seasoned analyst with over two decades of experience in traditional and digital markets, I must say that the recent surge in spot Bitcoin ETF inflows is nothing short of astounding. The parabolic rally of Bitcoin has certainly caught my attention, and it seems to have caught the eyes of investors as well.
Investment products tied to Bitcoin, specifically Exchange-Traded Funds (ETFs) based in the U.S., have seen an unprecedented surge in deposits over the past week, indicating that investors remain bullish about Bitcoin as its price continues to skyrocket.
As an analyst, I observed a significant surge in investments towards Bitcoin Exchange Traded Funds (ETFs) last week, specifically between Nov. 18 and Nov. 22. According to SoSoValue, a renowned crypto tracking platform, the net inflows amounted to $3.38 billion, which represents a staggering 102% rise compared to the previous week’s inflow of $1.67 billion.
The figure represents the largest recorded weekly inflows for spot Bitcoin ETFs. It also marks the seventh consecutive week of positive flows, according to SoSoValue.
As of November 22nd, BlackRock’s iShares Bitcoin Trust (IBIT) remains the largest with a total of $48.95 billion in assets, and it has attracted cumulative investments of $31.33 billion. Conversely, the Grayscale Bitcoin Trust ETF, though currently managing $21.61 billion, has experienced outflows amounting to over $20 billion since its launch.
Digital asset products record $37 billion year-to-date
As a researcher, I’ve observed an impressive flow of investments into digital assets, with over $37 billion pouring into various investment products so far this year, based on data from the crypto investment firm CoinShares.
The ETF inflows were driven primarily by the Bitcoin ETFs and had already outpaced the debut of gold ETFs, which only attracted $309 million in the first year of trading.
As per CoinShares’ report, investments in Bitcoin (BTC) within the US increased, but this growth was counterbalanced by decreases in investments from countries such as Germany, Sweden, and Switzerland. In other words, while the US saw an influx of BTC investments, these were offset by outflows from other nations. Furthermore, according to CoinShares, the recent surge in Bitcoin’s price served as a trigger for investors to cash out their profits instead of further expanding their positions.
CoinShares data estimates total Bitcoin ETF inflows at $3.12 billion for the week.
Inflows totaling $10 million were seen in short Bitcoin investment products, suggesting that some investors might be taking measures to guard against possible losses. On the other hand, markets in Australia, Canada, and Hong Kong displayed confidence, with a combined total of around $70 million flowing into these regions.
Bitcoin hits a new all-time high of $99,655
The surge in weekly deposits occurs following Bitcoin reaching an unprecedented peak price of $99,655.50 before undergoing a minor adjustment. According to CryptoMoon Markets Pro, this record-breaking event took place on November 22nd.
Despite this, the crypto asset could not break through to $100,000, a much-anticipated milestone for the crypto community. The asset currently trades at $98,459.95.
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2024-11-25 15:23