Spot Bitcoin exchange-traded funds (ETFs) in the U.S. recently saw an unprecedented surge in inflows, marking their largest single-day intake ever. On November 7, institutional investors poured $1.37 billion into eleven spot Bitcoin ETFs, setting a new record. This influx coincided with Bitcoin hitting an all-time high just under $77,000, driven by Donald Trump’s unexpected presidential election win and a further interest rate cut by the Federal Reserve. According to Farside Investors, the total assets under management in U.S. spot Bitcoin ETFs have now reached a remarkable $25.5 billion.
Bitcoin ETF Frenzy: BlackRock Leads the Pack
The majority of this inflow was captured by BlackRock’s iShares Bitcoin Trust (IBIT), which recorded an impressive $1.12 billion in a single day. This represents the largest fund flow for IBIT since its debut in January 2024, pushing its total inflows to $27 billion. The BlackRock iShares Bitcoin Trust now holds $32.8 billion in assets, supported by its BTC holdings amounting to 432,674.
Eric Balchunas, a senior ETF analyst at Bloomberg, expressed his astonishment on social media, remarking, “I expected it to be big, but even I’m surprised it’s this significant — by far the largest one-day inflow for any Bitcoin ETF ever.”
This notable inflow came after a brief trend of outflows where $113 million exited the IBIT fund over the previous two trading days. Apart from BlackRock, Fidelity’s Bitcoin ETF (FBTC) also saw substantial inflows of $191 million on the same day. Other key players, including Bitwise, Ark 21Shares, and Grayscale, received smaller inflows between $13 million and $20 million.
In total, the last two days have seen around $2 billion entering U.S. spot Bitcoin ETFs, reflecting a renewed bullish sentiment in the crypto market.
Ethereum ETFs Gaining Traction
Not to be overshadowed by Bitcoin, Ethereum ETFs also experienced significant inflows. November 7 saw the highest daily inflow since August 6 for the nine Ethereum ETFs, amounting to $79.7 million. BlackRock’s ETHA and Fidelity’s FETH funds led the charge, attracting $23.7 million and $28.9 million, respectively.
Although these figures are modest compared to the Bitcoin ETF inflows, it’s important to note that Ethereum’s market cap and price are still significantly smaller than Bitcoin’s. The recent inflows have also helped reduce the total deficit in Ethereum ETF flows, which was previously negative by $410 million due to consistent outflows from Grayscale’s ETHE fund, known for its high fees.
Encouragingly, Ethereum ETFs have seen zero outflows over the past three days, hinting that the trend of capital flight might be slowing down. If Ethereum’s price continues to rise, we could see a surge in interest similar to Bitcoin’s.
Key Drivers Behind the Inflows
Several factors are contributing to the renewed institutional interest in crypto ETFs:
1. Political and Economic Shifts: The market response to Donald Trump’s election victory and another rate cut by the U.S. Federal Reserve has been positive, with investors increasingly turning to Bitcoin as a hedge.
2. Bitcoin’s Record High: The recent surge to nearly $77,000 has reignited interest among investors looking to capitalize on its bullish momentum, sparking a wave of new investments.
3. ETF Accessibility: Spot Bitcoin ETFs offer a secure and regulated way for institutions to invest in Bitcoin without direct exposure to its storage and security risks.
4. Bullish Market Sentiment: With the broader crypto market showing strength, institutional investors are becoming more confident, leading to increased fund flows into both Bitcoin and Ethereum ETFs.
Outlook for Crypto ETFs
With a record $25.5 billion now managed by spot Bitcoin ETFs, it’s clear that institutional appetite for Bitcoin remains strong. The recent influx could mark the beginning of a new phase of investment, particularly as macroeconomic conditions continue to favor risk assets like cryptocurrencies.
Ethereum ETFs, though smaller in comparison, are showing signs of a comeback, potentially setting the stage for further growth if the crypto market rally extends. Investors seem to be diversifying their holdings beyond Bitcoin, a trend that may accelerate if Ethereum prices continue their upward momentum.
As we head into the coming months, the macroeconomic environment and Bitcoin’s price performance will be key factors influencing institutional inflows into these ETFs. If positive trends continue, we could see even more capital flowing into the crypto market, solidifying its status as a mainstream asset class.
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