TL;DR
- Bitcoin spot ETFs hit $1.7 billion in weekly inflows, marking six consecutive weeks of positive flows.
- Assets under management by these ETFs represent 5.27% of Bitcoin’s market capitalization, which exceeds $1.8 trillion.
- Institutional investors such as Paul Tudor Jones and Goldman Sachs have significantly increased their exposure to these funds.
Bitcoin spot exchange-traded funds (ETFs) continue to show impressive growth in the financial market, accumulating net inflows of $1.67 billion during the week of November 11-15.
This performance marks six consecutive weeks of positive flows, bringing total assets under management to $95.4 billion.
This data, provided by the SoSoValue tracking platform, reflects a sustained interest from institutional and retail investors in Bitcoin as a benchmark asset in the cryptocurrency sector.
BlackRock’s iShares Bitcoin Trust (IBIT) leads the market with $29.3 billion in cumulative inflows, standing out as the largest recipient of capital in this segment. On the other hand, the Grayscale Bitcoin Trust has seen outflows of $20.3 billion since the start of spot Bitcoin ETF trading in January, evidencing a shift in preferences among investors.
The source of this information, also notes that Bitcoin hit a new all-time high of $92,400 on Nov. 13, further boosting interest in these financial products.
In addition to Bitcoin ETFs, Ether (ETH) exchange-traded funds have also seen sustained growth, accumulating $515 million in weekly inflows. Over the past three weeks, Ether ETFs have attracted a total of $682 million, cementing their position as an attractive alternative in the cryptocurrency ecosystem.
Institutional investors reinforce their bet on Bitcoin
The growing popularity of Bitcoin ETFs has not gone unnoticed by big investors. Paul Tudor Jones, a prominent fund manager, increased his stake in IBIT in the third quarter, acquiring shares worth $130 million.
With this investment, Jones becomes the ninth largest holder of the fund, with almost $160 million in shares. Other major players, such as Goldman Sachs, have also increased their exposure, increasing their stakes by 71% to reach $710 million.
The remarkable performance of these ETFs reflects a general trend towards institutional adoption of Bitcoin and other digital assets. According to data from CoinShares, cryptocurrency investment products generated global inflows of $2.2 billion last week, despite some volatility that caused outflows of $866 million in the second half of the period.
The strength of these financial products lies in their ability to attract both institutional and retail investors, who seek to take advantage of the potential of Bitcoin in an environment of historical highs and growing confidence in the crypto market.
With capital under management representing more than 5% of the total Bitcoin market, spot ETFs are consolidating themselves as an essential component in the portfolio of those who bet on the evolution of the digital financial sector.
In this context, BlackRock‘s leadership and the growing interest of investors such as Paul Tudor Jones highlight the role of ETFs in the transition towards a broader adoption of cryptocurrencies, marking a significant milestone in their integration into the global financial system.
