By crypto.news | Created at 2024-11-23 13:32:55 | Updated at 2024-11-23 15:48:11
2 hours ago
Demand for spot Bitcoin exchange-traded funds soared to its highest levels since launch, with a whopping $3.38 billion flowing in this week, and experts foresee even greater momentum once BTC surpasses $100,000.
With five straight days of positive inflows, catalyzed by hopes of an increasingly friendly regulatory environment under President-elect Donald Trump, the total net asset value of Bitcoin Spot ETFs reached $107.488 billion for the first time.
The most inflows for the week were recorded on Nov. 21, drawing $1 billion, which coincided with anti-crypto SEC Chair Gary Gensler confirming his exit, marking an end to his crypto-hostile tenure.
The largest inflows of the week, totaling $1 billion, came on Nov. 21 — the same day SEC Chair Gary Gensler, known for his tough stance on crypto, announced he would step down on Jan. 20.
Bitcoin (BTC) rallied to a new all-time high of $99,800 less than a day after the news broke but failed to breach the highly coveted $100,000 mark as inflows into the 12 spot BTC ETF offerings dipped to $490.35M on Friday, according to SoSoValue data.
Weekly inflows managed to hit an all-time high of $3.38 billion.
BlackRock’s IBIT, which has maintained a 12-day inflow streak, led the day’s activity with $513.2 million, as only half of the twelve funds managed to draw in capital.
Inflows into other funds were as follows:
- Fidelity’s FBTC: $21.71 million.
- Valkyrie’s BRRR: $6.19 million.
- Grayscale’s Bitcoin mini trust: $5.72 million.
- VanEck’s HODL: $5.62 million.
- Invesco’s BTCO: $4.96 million.
Grayscale’s GBTC, with the highest fees among the lot, was the only offering to record outflows of $67.05 million. The remaining funds saw no flows.
Despite the late-week dip in inflows, market pundits believe the overall demand for ETF products remains strong.
Kadan Stadelmann, an early Bitcoin investor and chief technology officer at Komodo, credits the recent upsurge in demand to the “supply shock” stemming from the 2024 Bitcoin halving and heightened “geopolitical uncertainties” that fuel demand for Bitcoin as a hedge.
This momentum is expected to catapult even higher after BTC breaks past $100,000, according to TYMIO founder Georgii Verbitskii, who told crypto.news the milestone is likely to draw “renewed attention from mainstream media and traders alike.”
$100k is just the beginning
When writing, Bitcoin was just 1.47% shy of hitting six figures, with some market analysts speculating the milestone could be achieved well before 2024 ends.
Meanwhile, analysts like VanEck’s Nathan Frankovitz and Matthew Sigel predict that prices could soar to $180,000 within the next 18 months, aligning with experts at Bernstein Research, who recently raised their 2025 year-end target for BTC from $150,000 to $200,000.
In a recent report, Frankovitz and Sigel said BTC’s current rally is mirroring “the pattern from four years ago,” when Bitcoin doubled between the 2020 election and year-end, followed by an “additional ~137% gain in 2021.”
They added that the “next phase of the bull market is just beginning” with no technical price resistance in sight.
“With a transformative shift in government support for Bitcoin underway, investor interest is rising rapidly; we are receiving inbound calls at an accelerating pace as many investors find themselves under-allocated to the asset class. While we remain vigilant for signs of overheating, we reiterate our cycle price target of $180k per BTC as a number of key indicators we track continue to signal green for this rally.”
VanEck mid-November Bitcoin reportOn X, analyst Ali Martinez offered a similar perspective, drawing parallels to previous cycles. He suggested that Bitcoin could climb to $108,000 in the coming weeks and rally to $135,000 by year-end. See below.
