As Bitcoin Approaches $100,000, BTC ETFs Raise $1 Billion in Funds

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As Bitcoin Approaches $100,000, BTC ETFs Raise $1 Billion in Funds

As Bitcoin prices approach $100,000, BlackRock and Fidelity's Bitcoin exchange-traded funds (ETFs) have attracted a significant portion of new capital. Bitcoin spot ETFs recorded a near-record inflow yesterday, pulling in over $1 billion in capital. This move played a role in Bitcoin reaching record levels as it nears the $100,000 mark for the first time.

This substantial influx of capital came shortly after the SEC approved listings for options on spot Bitcoin ETFs. BlackRock's iShares Bitcoin Trust (IBIT) drew the largest amount of capital among all funds, exceeding $608 million in inflow on November 21. Fidelity Wise Origin Bitcoin Fund (FBTC) and Bitwise Bitcoin ETF (BITB) raised $301 million and $68 million, respectively. Meanwhile, Grayscale's GBTC lost investor interest, resulting in an outflow of $7.8 million, bringing its total net outflow to $20.26 billion since its launch.

Growing interest in Bitcoin ETFs is linked to the cryptocurrency's status as the largest by market capitalization. Notably, BlackRock's IBIT fund broke previous records by attracting $1.12 billion on November 7. This has coincided with Donald Trump's commitment to pro-crypto policies, increasing interest in the sector.

Bitcoin ETFs now represent a larger portion of the total Bitcoin supply and correspond to approximately 82% of the total value of gold ETFs. Bloomberg ETF analyst Eric Balchunas noted that Bitcoin ETFs reached $100 billion in assets in the U.S. as of November 22. In contrast, Ethereum ETFs have recorded outflows daily since November 14, failing to benefit from this surge, with an outflow of $7 million noted on November 21.

The significant interest in Bitcoin has driven the cryptocurrency to a new record level around the $99,000 mark. As Bitcoin’s value remains at record highs, the total crypto market capitalization has reached $3.4 trillion.

This increase can be attributed to Bitcoin's surge in the last 24 hours and XRP's rise of over 30%, reaching a market value of $85 billion. Other major cryptocurrencies like Stellar, Cardano, and Bitcoin Cash have seen notable gains ranging from 15% to 25%. Meanwhile, XRP and XLM, which operates in a similar space, emerged as some of the highest-gaining cryptocurrencies in the top 100.