Demand for cryptocurrency exchange-traded funds (ETFs) linked to Bitcoin (BTC) and Ether (ETH) has surged to historic levels, reflecting growing interest in digital assets.
This sharp rise follows President-elect Donald Trump’s stated pro-crypto policies, which have fueled optimism among investors. Bitcoin ETFs recorded an inflow of $6.5 billion in November 2024, while Ether ETFs attracted $1.1 billion, setting new benchmarks for these financial instruments.
Bitcoin ETF inflows surge as market cap climbs
The rising inflows into Bitcoin ETFs highlight renewed confidence in the digital asset market. Bitcoin ETFs saw $6.5 billion in net inflows in November, driven by strong institutional interest and positive sentiment surrounding the upcoming administration’s plans for the crypto sector. The broader cryptocurrency market cap rose slightly, reaching $3.43 trillion, with 24-hour trading volume spiking 18% to $181 billion.
Bitcoin’s price surged but remained shy of the $100,000 mark in November. It is currently trading at an average price of $96,892. Despite this, analysts note that Bitcoin balances on exchanges steadily decline, suggesting sustained buying pressure. Observers say the limited supply on platforms like Bitfinex, Binance, and Coinbase could further drive prices higher as demand grows.
Ether ETFs gain momentum amid strong price performance
Ether ETFs have also gained significant traction, pulling in $1.1 billion in November and setting a new record for the asset. Last week alone, these ETFs saw $466 million in inflows, a notable reversal from the previous week’s outflows of $71.6 million. Leading asset management firms such as BlackRock and Fidelity have contributed significantly to these inflows, with BlackRock’s ETHA ETF attracting $2.1 billion.
Ether’s price has risen by 48% in the past week, reaching an average price of $3,691. Although it has yet to surpass its all-time high, Ether’s outperformance relative to Bitcoin since Trump’s election signals increasing interest in altcoins.
XRP gains amid regulatory optimism
XRP, the cryptocurrency associated with Ripple, has emerged as a standout performer. It has soared 376% over the past month, fueled by hopes of a potential regulatory breakthrough under the new administration. Ripple’s native token is now the third-largest cryptocurrency, with a market capitalization exceeding $140 billion. XRP is trading at an average price of $2.44, and firms are reportedly exploring XRP-focused ETFs.
The crypto market has surged $1.2 trillion since Trump’s victory, signalling renewed enthusiasm for digital assets. With Bitcoin dominance dropping to 56%, the rise in Ether and XRP suggests a shift toward broader altcoin adoption, potentially marking the start of a new phase for the crypto market.
The post Crypto ETFs Reach Record Highs With $6.5 Billion for Bitcoin and $1.1 Billion for Ether first appeared on Coinfea.
