US spot Bitcoin exchange-traded funds (ETFs) received over $2.4 billion in inflows last week. In contrast, China-based ETFs experienced significant outflows, with over $2 billion withdrawn during the same week.
China-based ETFs saw their largest weekly outflow
Spot-based ETFs saw their fourth-largest week in investments starting November 18-22. According to Dune, the US funds recorded an impressive $2.42 billion in inflows.
Source: Tradingview
However, investors withdrew over $2 billion from China-based ETFs in the same period. In an X post, the Kobeissi Letter confirmed this:
Last week alone, China ETFs saw $2 billion outflows, marking the largest weekly outflow in history. Despite deploying pandemic-like stimulus, recent data suggests that China’s economy is worsening.
Kobeissi Letter
Moreover, the country’s largest ETF, the iShares China Large-Cap ETF (FXI), accounts for nearly half of the total withdrawals, recording $984 million in outflows over the past week. This marks the fifth consecutive week of negative outflows.
The Kobeissi letter even touched on the drop in Chinese market sentiment. He argued that Chinese consumer confidence has slumped by 50 points in the last three years—a drop never seen before.
Bitcoin price rally has fueled the growth of ETFs
Bitcoin’s price rose to new heights in the past week, with BTC going for $99800 on November 22nd, just two weeks after Donald Trump’s victory. Some crypto analysts have even predicted that BTC’s price could soon reach $100,000 or $150,000 per coin. However, some are still skeptical of the current Bitcoin rally’s sustainability.
Galaxy Digital’s Mike Novogratz believes the price could very well sink to $80000, noting there’s high leverage in the crypto space. Currently, Bitcoin is trading at $98147, representing a 0.84% dip from the previous day’s peak. However, Bitcoin’s price has risen by over 47% in a month.
The Bitcoin rally has nevertheless boosted the ETF market. As of November 21, US spot ETFs had also crossed the $100 billion mark in assets held, analysts attributing the milestone to Trump’s win believing it started the BTC price spike.
Eric Balchunas, a senior Bloomberg analyst, even stated that Bitcoin ETFs are 82% of the way to surpassing gold in assets.
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