Bitcoin ETFs recorded more than $1 billion in inflows as Bitcoin approaches $100,000 for the first time amid market volatility. BlackRock’s iShares Bitcoin Trust attracted the largest share, with overall assets hitting $100 billion. However, Ethereum ETFs have seen consecutive outflows since November 14.

On November 21, Bitcoin exchange-traded funds (ETFs) experienced substantial inflows exceeding $1 billion, coinciding with Bitcoin’s approach to the $100,000 mark amidst significant market fluctuations. This surge in inflow followed the commencement of options trading for BlackRock’s spot Bitcoin ETF, which was approved by the Securities and Exchange Commission (SEC) last month. Notably, BlackRock’s iShares Bitcoin Trust (IBIT) led the way with inflows surpassing $608 million, while Fidelity Wise Origin Bitcoin Fund and Bitwise’s ETFs gathered $301 million and $68 million, respectively.

Despite these impressive inflows, the figures remain lower in comparison to the record amount seen on November 8, following prior pro-crypto governmental speculation. On that day, BlackRock’s IBIT achieved an inflow of $1.12 billion. It is significant to note that BlackRock’s corporate actions, such as promises to bolster crypto mining regulations and the potential establishment of a U.S. Bitcoin reserve under a pro-crypto administration, appear to have attracted investor interest at that time.

Bitcoin ETFs are emerging as a preferred method for holding Bitcoin, with assets under management reportedly reaching $100 billion as of November 22. According to Bloomberg ETF analyst Eric Balchunas, Bitcoin ETFs are not only close to surpassing holdings by Bitcoin’s creator, Satoshi Nakamoto, but also represent approximately 82% of the total market value of Gold ETFs. In contrast, Ethereum ETFs have faced challenges, experiencing consecutive outflows since November 14, with a loss of $7 million recorded on November 21.

The current trend of Bitcoin ETFs illustrates a significant shift in how investors are approaching Bitcoin acquisitions, particularly in light of recent regulatory developments. The approval of options trading for Bitcoin ETFs by the SEC has facilitated increased market activity. Historical trends indicate that political developments and investor expectations regarding cryptocurrency regulation can dramatically affect inflow amounts. Additionally, the comparative performance of Ethereum ETFs suggests varying levels of investor confidence in different cryptocurrencies, reflective of market dynamics and sentiment.

In conclusion, the recent inflow of over $1 billion into Bitcoin ETFs signifies a robust investor confidence as Bitcoin inches closer to $100,000. BlackRock’s IBIT is notably at the forefront, drawing in the lion’s share of new capital. The ongoing relevance of Bitcoin as an investment vehicle is underscored by its substantial presence in the ETF market, contrasting sharply with the troubling performance of Ethereum ETFs. This distinction highlights a critical moment in the evolution of cryptocurrency investments.

Original Source: decrypt.co

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