Recently, Bitcoin exchange-traded funds (ETFs) have reached a significant milestone by surpassing $100 billion in Assets Under Management (AUM).
This week has seen a remarkable total net flows of $2.89 billion with one trading day left, setting a new record. Moreover, the total net inflows have reached $30.35 billion.
A senior ETF analyst at Bloomberg, Eric Balchunas, highlighted this outstanding performance on the social media platform, X (formerly Twitter), indicating that year-to-date (YTD) inflows have exceeded expectations, doubling their initial estimate.
“Double our estimate.”
Balchunas pointed out that Bitcoin ETFs are now on the verge of surpassing Satoshi Nakamoto as the largest holder of BTC by 97% and are close to overtaking gold ETFs by 82%.
Inflows into Bitcoin ETFs
Data from SoSo Value revealed that the significant achievement was preceded by substantial inflows since the beginning of the week. This influx intensified as the week progressed.
On November 20, 2024, inflows surged to $796 million, leading to total net assets exceeding $100 billion. Additionally, daily total net inflows peaked at $1 billion on November 21.
As of now, total net assets stand at $105.91 billion, representing 5.46% of Bitcoin’s market capitalization.
Notably, IBIT was the largest contributor, holding nearly half of the total assets at $47.92 billion and accounting for $608 million in inflows.
IBIT also demonstrated strength in the options market, with Bloomberg’s ETF analyst, James Seyffart, mentioning that 97% of Bitcoin ETF options volume was focused on IBIT.
Bitcoin Climbing Towards $100,000?
Meanwhile, Jeff Park, Head of Alpha Strategies at Bitwise, commended the milestone on X, expressing:
“It’s only fitting we celebrate this milestone with Bitcoin achieving $100k.”
Notably, Bitcoin recently hit a new all-time high of over $99,300, edging closer to a six-figure valuation. As per CoinMarketCap, at present, BTC is trading at $99,057, reflecting a 1.98% daily increase.
But how high can Bitcoin ascend before the rally tapers off? Benjamin Cowen, the CEO of Into The Cryptoverse, shared insights on this matter.
He drew comparisons between Bitcoin’s trajectory and QQQ’s 1999 launch, which surged from $48-$49 to $120 in 54 weeks, despite minor pullbacks.
Cowen noted that Bitcoin ETFs were launched close to $48,000, with the 54 weeks coinciding with various events around January 20, including Donald Trump’s inauguration and an expected resignation of SEC Chair Gary Gensler.
“What are the chances #BTC rallies until mid-January (along with #BTC dominance), then BTC/USD experiences a correction as seen in January during post-halving years?”
Another Landmark for Bitcoin
Adding to Bitcoin’s momentum, Balchunas pointed out another achievement for the leading cryptocurrency as the trading volume for the “Bitcoin Industrial Complex” reached a new record high.
He stated:
“BITSANITY: Let’s aim for $70b in volume today for The Bitcoin Industrial Complex, surpassing yesterday’s record.”
Out of this, Balchunas mentioned that $50 billion came from MicroStrategy (MSTR) and related products, while IBIT contributed $5 billion, marking its second-highest trading day.
With Bitcoin ETFs shattering records and the cryptocurrency nearing the $100,000 mark, the market’s optimism continues to surge.