Investors are currently allocating substantial capital to spot Bitcoin exchange-traded funds (ETFs) in the United States, showing an increasing interest in these financial products. These ETFs enable individuals to invest in Bitcoin (BTC) without owning the cryptocurrency directly. As of November 27, these funds have drawn a record $6.2 billion in new inflows for the month, surpassing the previous record of $6 billion set in February.
Record-Breaking Inflows for Bitcoin ETFs
In November, Bitcoin ETFs have attracted unprecedented inflows, with $6.2 billion so far, beating the previous high of $6 billion. This surge in investments comes amid Bitcoin’s continued growth, particularly spurred by political support and regulatory changes. BlackRock’s iShares Bitcoin Trust (IBIT) is leading this charge, securing $5.4 billion in November alone. Year-to-date, the trust has seen a total of $31.6 billion in inflows.
On November 11, spot Bitcoin ETFs experienced inflows of $1.11 billion, followed by another $1 billion on November 21, according to data from SoSoValue.
Bitcoin’s Bullish Momentum and Trump’s Pro-Crypto Agenda
The significant rise in Bitcoin ETF investments is driven by Bitcoin’s surge toward the $100,000 milestone, a climb partly fueled by President-elect Donald Trump’s pro-cryptocurrency agenda. Bitcoin briefly touched the $100,000 mark last week, partially driven by Trump’s promises to loosen current crypto regulations and create a more welcoming environment for digital assets.
Trump has expressed plans to make the U.S. the global crypto hub, proposing the establishment of a “Strategic Bitcoin Reserve.” Additionally, he aims to create a crypto advisory council to develop transparent regulatory policies that would benefit the digital asset sector.
Bitcoin Outperforms Traditional Assets in 2024
Bitcoin’s impressive year-to-date performance, showing a rise of 151.5%, continues to outperform traditional assets such as stocks and gold. While Bitcoin’s rally has slowed slightly this week, with the price hovering around $97,300, its gains are still remarkable.
This surge follows the U.S. Securities and Exchange Commission’s (SEC) approval of spot Bitcoin ETFs in January, which came after a favorable court ruling. The departure of SEC Chairman Gary Gensler, known for his critical stance on cryptocurrency, has opened the door for a more crypto-friendly SEC leadership. This shift could lead to more ETFs for other digital tokens in the near future
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