Crypto Market Cap Reaches $3 Trillion Amid Record ETF Inflows
The crypto market reached a $3 trillion market cap in mid-November, resulting in significant inflows into Bitcoin and Ether exchange-traded funds (ETFs). This growth is attributed to increased optimism among institutional investors following Donald Trump's election victory, which many view as a potential shift towards a more crypto-friendly regulatory environment in the United States.
Bitcoin and Ether ETFs Attract Record Inflows
November 2024 was a notable month for crypto ETFs, with Bitcoin ETFs experiencing $6.5 billion in net inflows and Ether ETFs attracting $1.1 billion. These figures represent record highs for both cryptocurrencies, reflecting bullish market sentiment.
BlackRock and Fidelity lead the Ether ETF market, with BlackRock’s ETHA accumulating $2.10 billion in cumulative inflows. Notably, Ether ETFs saw $466 million in inflows during the last week of November, reversing the previous week's outflow of $71.6 million. This surge coincided with a 48% increase in Ether's price, reaching an average trading price of $3,616 at the time of writing.
Since their launch earlier this year, Bitcoin ETFs have gathered $30.7 billion in net inflows, while Ether ETFs, introduced in late July, have attracted $573.3 million. The demand for these products indicates a trend towards digital assets as alternatives to traditional investments.
Altcoins Gain Momentum
The broader crypto market has experienced significant changes. Bitcoin achieved a new all-time high of $99,655 in November but did not surpass the $100,000 mark.
Ether has outperformed Bitcoin since the US election, although it remains below its all-time high of $4,891 from three years ago. Bitcoin’s market dominance has decreased from 60% to 56%, suggesting a possible shift towards altcoins.
XRP has regained its status as the third-largest cryptocurrency by market capitalization, overtaking Solana and Tether. This recovery follows optimism regarding the SEC potentially dropping its appeal against Ripple in their ongoing legal dispute.
The ETF landscape is expanding beyond Bitcoin and Ether, with firms like Canary Capital and Bitwise reportedly preparing to launch XRP-focused ETFs, indicating increasing interest in diversifying crypto investment options.
The evolving crypto market, driven by institutional interest, regulatory optimism, and technological advancements, may further entrench digital assets within global finance.