Spot Bitcoin exchange-traded funds (ETFs) in the US have seen a significant increase in total assets under management, crossing the $100 billion milestone. According to data from SoSoValue, these ETFs now have approximately $100.6 billion in total assets, with total inflows of $29.35 billion. This represents around 5.4% of Bitcoin’s total market capitalization. In addition, Farside Investors data shows that these funds have been receiving substantial inflows over the last few days, with BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s FBTC seeing significant inflows recently.
The funds have been experiencing an average daily inflow of $134.5 million, with the highest single-day inflow reaching $1.37 billion, the majority of which was allocated to BlackRock’s spot Bitcoin fund. Eric Balchunas, a senior ETF analyst at Bloomberg, noted that these funds are on track to surpass the total amount of Bitcoin owned by Satoshi Nakamoto, the pseudonymous creator of the cryptocurrency. They are also closing in on gold ETFs in total assets, currently at 82% of the way to overtaking them.
The surge in the price of Bitcoin, which has risen over 165% in the past year to reach $97,700, coincides with the launch of these spot Bitcoin ETFs and the victory of Republican candidate Donald Trump in the US presidential elections. Trump’s support for the cryptocurrency sector has been seen as bullish for Bitcoin, as it could lead to a more favorable regulatory environment. Historically, Bitcoin has experienced significant price rallies following US presidential elections, with returns of 87%, 44%, and 145% after the elections in 2012, 2016, and 2020, respectively.
Overall, the approval of spot Bitcoin ETFs by the SEC has had a profound impact on the cryptocurrency market, with total assets under management crossing the $100 billion mark. The influx of institutional capital into these funds highlights a growing interest from traditional investors in the digital asset space. As Bitcoin continues to rally and gain mainstream acceptance, ETFs are poised to play a significant role in providing exposure to the cryptocurrency for a wider range of investors. With regulatory clarity improving and the broader market embracing Bitcoin, the future looks bright for these spot Bitcoin ETFs and the cryptocurrency market as a whole.
