The net assets of Bitcoin ETFs in the US have for the first time exceeded the $100 billion mark, nearly catching up with the size of gold ETFs, following Donald Trump's victory in the presidential election.
November 21 marked an important milestone for the cryptocurrency market as the total net assets of Bitcoin (ETF) funds in the US for the first time exceeded the $100 billion threshold, according to data from Bloomberg Intelligence.
This remarkable growth has occurred against the backdrop of a strong increase in the price of Bitcoin following the victory of Mr. Donald Trump in the US presidential election on November 5, indicating the growing interest of investors in this digital asset.
The launch of Bitcoin ETFs in January this year has provided significant momentum to the market. As of November 21, Bitcoin ETFs are managing around $104 billion in assets, approaching the size of gold ETFs with around $120 billion in Assets Under Management (AUM), according to Bitcoin Archive.
Eric Balchunas, an ETF analyst at Bloomberg Intelligence, noted on the X platform that Bitcoin ETFs have reached 97% of the pace to become the largest Bitcoin holder and 82% of the pace to surpass gold ETFs.
Attractiveness from Trump's Victory
Mr. Trump's victory, who is considered crypto-friendly, has driven a strong wave of investment into the cryptocurrency market. Cointelegraph Research has reported that many investors believe the new administration will create favorable conditions for the development of this industry. The spot price of Bitcoin has surged to over $96,000 on November 21, recording a growth of nearly 120% since the beginning of 2024, according to data from Google Finance.
This explosion is clearly reflected in the trading activity of BlackRock's iShares Bitcoin Trust (IBIT), the leading Bitcoin ETF, which has seen net inflows of $30 billion since January. On November 6, IBIT recorded a record trading volume as investors rushed into cryptocurrencies after Mr. Trump's victory.
Just one day later, IBIT attracted an additional $1.1 billion in capital, quickly recovering after two days of capital outflows totaling $113.3 million, according to data from Farside. The second-largest in terms of capital inflows is the Fidelity Wise Origin Bitcoin Fund (FBTC) with over $11 billion as of the current time in 2024.
The strong growth of Bitcoin ETFs also reflects the trend of seeking inflation-hedging investment channels amid increasing geopolitical instability. A JPMorgan report on October 3 pointed out that investors are shifting to gold and Bitcoin as part of their "inflation-trading strategy" amid concerns about a negative economic scenario. MV Global forecasts that the price of Bitcoin could reach between $100,000 and $150,000 per BTC.
Notably, BlackRock's IBIT fund currently holds more assets than the company's own gold ETF, despite being launched only in January, according to data from BlackRock.
