Spot Bitcoin ETFs Attract $766 Million in Inflows This Week
US exchange-traded funds (ETFs) that invest directly in Bitcoin are experiencing high demand, driven by President-elect Donald Trump's commitment to reducing regulatory barriers in the crypto sector. On December 5, these ETFs recorded $766 million in daily inflows, the highest for the week, contributing to a weekly total of $2.35 billion, according to SoSoValue.
Institutional Appetite Surges
The increased interest in these funds highlights growing speculation in crypto following Trump's election win on November 5. His campaign included promises to establish clear regulations and consider Bitcoin as a reserve asset.
Trump's supportive stance has boosted confidence in digital assets, attracting traditional investors who prefer ETFs for market exposure instead of direct asset ownership.
On Thursday, investors acquired $770 million in BlackRock's iShares Bitcoin Trust (IBIT), making it the top-performing ETF for the day. IBIT has a cumulative net asset value of $34 billion, according to SoSoValue.
BlackRock controls about 3% of Bitcoin's circulating supply through its strong ETF offerings. Its spot Bitcoin ETFs have consistently drawn significant inflows, contributing over $50 billion in market cap since inception.
Other notable funds include Fidelity Wise Origin Bitcoin Fund (FBTC) and ARK 21Shares Bitcoin ETF (ARKB), which attracted $47 million and $12 million in inflows, respectively, on Thursday.
Bitcoin Hits $100K Milestone
The adoption of Bitcoin ETFs aligns with Bitcoin reaching the $100,000 price milestone. Earlier this week, Bitcoin set a new all-time high of $103,000, surpassing the psychological barrier.
Bitcoin originated in 2008 with its whitepaper by Satoshi Nakamoto and launched as the first digital currency in 2009. It has now established itself within the global financial system, providing opportunities for financial independence.
Market analysts project continued price increases for Bitcoin. Commodity trader Peter Brandt forecasts a rise to $150,000 by August 2025. Standard Chartered, a UK-based banking giant, expects Bitcoin to reach $150,000 by year-end, driven by rising ETF demand.
The bank asserts that the growing adoption of Bitcoin ETFs will significantly enhance the asset's value.