In November, a remarkable event is taking place in the U.S. cryptocurrency market as a dozen Bitcoin exchange-traded funds (ETFs) have attracted a staggering $6.2 billion in inflows. This amount is nearing the monthly inflow record, especially with Bitcoin hovering close to the $100,000 mark.
Spot Bitcoin ETFs are on track to experience their strongest month to date, having already witnessed $6.2 billion flowing in during this month, according to Bloomberg reports. This influx is being bolstered by two significant factors. Firstly, Bitcoin’s price has been surging towards the $100,000 milestone, which has naturally caught the attention of investors. Secondly, President-elect Donald Trump’s crypto-friendly agenda has added to the allure. Trump has pledged to reverse the strict stance on cryptocurrencies adopted by the Biden administration. He has proposed regulatory changes and even the establishment of a strategic Bitcoin reserve.
Analysts interviewed by Bloomberg believe that these combined moves, along with Bitcoin’s recent rally, are significantly enhancing investor confidence in crypto ETFs. As Josh Gilbert, a market analyst at eToro, stated, “Under a Trump administration, it’s expected to be easier for businesses and retirement funds to include Bitcoin in their portfolios.”
It’s worth noting that the U.S. Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs earlier this year following a legal defeat in 2023. During the tenure of SEC Chair Gary Gensler, who has been a critic of the crypto industry, not only were Bitcoin ETFs approved but also Ethereum-linked ETFs got the green light. However, while the approval of Ethereum-linked ETFs didn’t have as significant an impact on Ethereum’s price as Bitcoin’s sharp rise did.
Recent data reveals an interesting trend. In the four trading days leading up to Thanksgiving, Ethereum-linked ETFs gained momentum and managed to outpace Bitcoin ETFs in terms of inflows. Nevertheless, Bitcoin ETFs still dominate the market. As of Nov. 27, according to SoSoValue, Bitcoin ETFs have combined net assets.
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