Bitcoin ETF Attracts 1 Billion USD as BTC Price Approaches 100,000 USD

Bitcoin's price is nearing the milestone of 100,000 USD, leading to a surge in investment in Bitcoin exchange-traded funds (ETFs). Yesterday, the cash flow into Bitcoin ETFs reached over 1 billion USD, nearly setting a record, amidst volatile trading.

Notably, #BlackRock⁩ and Fidelity are the two organizations attracting most of the new capital. According to data from Farside Investors, BlackRock's iShares Bitcoin Trust (IBIT) recorded the largest cash flow, reaching 608 million USD on November 21. The Fidelity Wise Origin Bitcoin Fund (FBTC) also performed well, attracting over 301 million USD, while the Bitwise Bitcoin ETF (BITB) received an additional 68 million USD.

This large flow of capital occurred right after BlackRock launched its options trading for the $BTC ETF on November 19, which was approved by the U.S. Securities and Exchange Commission (SEC). However, the capital flow yesterday was still lower than the record set on November 7, prior to the U.S. presidential election. At that time, BlackRock's IBIT fund attracted up to 1.12 billion USD, surpassing the previous record of 872 million USD.

These massive cash flows somewhat reflect investors' high expectations for Donald Trump's crypto-friendly administration. Mr. Trump has previously committed to protecting the crypto mining industry, firing officials like Gary Gensler from the SEC, and establishing a strategic national Bitcoin reserve fund.

The development of Bitcoin ETFs not only attracts capital flows but also changes the way Bitcoin is held. According to analysis by Eric Balchunas, a Bloomberg ETF expert, assets in U.S. Bitcoin ETFs reached 100 billion USD on November 22. This means that Bitcoin ETFs now hold a larger portion of the total Bitcoin supply compared to the estimated holdings of Satoshi Nakamoto, the founder of Bitcoin.

Nevertheless, this positive cash flow has not spread to Ethereum ETF funds. Data from Farside Investors shows that Ethereum ETFs have continuously recorded outflows since November 14, with a decrease of 7 million USD just on November 21.