Last week, US spot Bitcoin exchange-traded funds (ETFs) experienced an inflow of $3.24 billion, marking the second-largest weekly inflow since their launch in January 2024. This surge in interest coincided with Bitcoin’s rise to record highs, further igniting investor enthusiasm. Data from SoSoValue indicates that only one week, ending November 22, 2024, saw greater inflows at $3.38 billion.
This recent uptick in investments significantly reversed the previous week’s trend, which saw $902 million in outflows, bringing the cumulative inflows over the past month close to $4 billion. BlackRock’s iShares Bitcoin Trust, dubbed IBIT, led the influx, attracting $1.8 billion of these net inflows. Currently, IBIT manages a staggering $96.2 billion in assets, solidifying its position as the market leader against competitors.
Fidelity’s FBTC, the second-largest fund by net asset value, garnered $692 million, representing around 38% of IBIT’s total inflows. Trading activity has also heavily favored IBIT, which experienced several billion dollars worth of shares exchanged daily. In contrast, FBTC reached a trading volume peak of $715 million, indicating that BlackRock’s fund has become the preferred choice among institutional investors.
The substantial inflows into Bitcoin ETFs coincided with BTC’s price surge, surpassing $125,000 on Sunday and eclipsing its previous peak near $124,000 set in August. October is historically a strong month for Bitcoin, and the cryptocurrency has already increased by more than 10% this month. Notably, Friday alone accounted for $985 million in net inflows—the second-highest single-day influx since January 6, when $987 million was recorded.
The recent US government shutdown appears to be driving investors toward perceived safe-haven assets like Bitcoin and gold. During the past week, gold also reached fresh all-time highs. This shift reflects growing investor caution amid political uncertainty, with Bitcoin benefiting similarly from increased capital flows.
Adding to the bullish sentiment is the declining total Bitcoin balance on centralized exchanges, which has dropped to a six-year low of 2.83 million coins. This decrease in available supply has heightened buy-side pressure, amplifying the effects of recent ETF inflows. Analysts identify the $117,300 level as pivotal support for Bitcoin, with potential upward movement toward $140,000 if current momentum persists.
The swift change in sentiment surrounding Bitcoin ETFs highlights the volatility in the market. Just a week prior, the sector was grappling with significant outflows; however, the rapid turnaround has reinforced confidence in ongoing institutional adoption. The growing prominence of IBIT and the escalating pace of inflows demonstrate how spot Bitcoin ETFs are increasingly influencing the cryptocurrency market landscape.
