U.S. spot Bitcoin exchange-traded funds (ETFs) saw nearly $676 million of inflows on Tuesday—nearly double the $353.67 million reported on Monday, according to data from SoSoValue.
As of press time, the total net assets held by the asset managers behind the U.S. spot Bitcoin ETF contracts stand at $104.25 billion. This is equivalent to around 1,076,609.7 BTC—close to the estimated 1.1 million BTC held by wallets belonging to Bitcoin’s pseudonymous creator Satoshi Nakamoto.
BlackRock’s iShares Bitcoin Trust ETF (IBIT) led the pack, with $693.25 million of net capital inflow on the trading day. It was followed by the Fidelity Wise Origin Bitcoin Fund with inflows of $52.17 million.
Despite the trading day being quite a positive one, ARK 21Shares Bitcoin ETF (ARKB) bled capital on Tuesday, with $93.5 million in outflows on the trading day.
The Grayscale Bitcoin Trust ETF saw no net asset flow in or out of the fund yesterday. After controlling almost the totality of the U.S. Bitcoin spot ETF when converted from a close-ended fund, it lost its stronghold and only controlled under a quarter of the market in late August. Now this contract holds nearly $20.6 billion, versus market leader IBIT’s holdings of nearly $48.5 billion.
Behind the Bitcoin ETF "surge"
Bitcoin ETFs are on a tear right now, with a record $7.6 billion in monthly net inflows across November.
Founder of Obchakevich Research Alex Obchakevich told Decrypt attributed the “significant surge in investments” to the recent victory of Donald Trump and the Republican Party in the U.S. elections. He argued that “Trump's position is as pro-crypto as possible,” increasing market confidence and attracting institutional investors.
“The growth was also greatly influenced by the approval of funds by the regulator, which freed investors' hands to interact with Bitcoin ETFs in a regulated environment,” he concluded.
Valentin Fournier, digital asset intelligence at market intelligence firm BRN, noted that Tuesday’s “robust” crypto ETF inflows also saw Ethereum spot ETFs pull in $133 million to their coffers.
Obchakevich suggested that heightened interest in crypto ETFs may allow the crypto market to capture new sectors “and go beyond the crypto community.” He highlighted that “we already have a recent case study from Tether, where a financial transaction to buy oil was conducted using USDT.”
“We are on the verge of big changes, where crypto ETFs are an important part of one big puzzle,” he concluded.