November 2024 marked a significant milestone for bitcoin exchange-traded funds (ETFs), with a record-breaking net inflow of $6.3 billion in investor funds, highlighting renewed confidence in the cryptocurrency sector.
According to data from Sosovalue, bitcoin ETFs experienced a surge in inflows driven by favorable market conditions and an upward trajectory in bitcoin’s spot price. A sustained rally by bitcoin saw the number one cryptocurrency rise from $67,000 to $99,000 in November alone, a 45% increase in value.
Donald Trump‘s re-election and his pro-crypto stance along with key government appointments also fuelled the jump in demand for bitcoin ETFs.
November saw $5.6 billion in investments in Blackrock‘s Ishares Bitcoin Trust ETF, which accounted for over 87% of all monthly inflows. Other well-known companies that drew sizable investments are the Vaneck Bitcoin ETF ($71.2 million), Grayscale’s Bitcoin Mini Trust ETF ($211.5 million), and Fidelity’s Wise Origin Bitcoin Fund ($962 million).
Bitcoin ETFs began November with $69.64 billion in total net assets and closed the month with $105.28 billion in total net assets, representing a 77% jump in assets. Despite the record inflows, bitcoin ETFs still recorded some outflows throughout the month. However, this did little to affect the bullish demand in November.
The strong inflows not only enhanced the liquidity of bitcoin ETFs but also demonstrated the growing acceptance of these products as mainstream investment vehicles. They enable investors to gain exposure to bitcoin’s performance without directly holding the asset.
With bitcoin continually inching toward the $100,000 price mark and growing bullish sentiment among investors, bitcoin ETFs are poised to continue to benefit from the price rally with more record numbers to come.
