Bitcoin has recently made headlines by becoming the seventh-largest asset in the world, surpassing even Saudi Aramco. Its dominance in the cryptocurrency industry has reached a new high of 61.38%, with the price soaring to over $93,000. This success can be attributed to various factors, including U.S. President-elect Donald Trump’s supportive stance on cryptocurrency during the election campaign.
One significant contributor to Bitcoin’s success is the massive influx of funds into U.S. spot-listed exchange-traded funds (ETFs). In the past six trading days alone, these ETFs have seen a staggering $4.7 billion in net inflows, with over $510.1 million pouring in on Wednesday. Since their introduction in January, the total inflow has reached $28.2 billion, according to Farside data.
Analysts have observed a shift in investor behavior, with many moving away from the basis trade strategy towards long positions. This demonstrates a growing demand for Bitcoin ETFs, which are seen as the primary driver of Bitcoin demand at the moment. BlackRock’s iShare Bitcoin Trust (IBIT) has seen record-breaking trading volume, reaching $5 billion for the first time.
While Bitcoin is dominating the headlines, Ethereum’s ether (ETH) is also attracting renewed interest from investors. U.S. spot-listed products related to Ethereum saw a significant inflow of $146.9 million on November 14th, bringing the total net inflow to $241.7 million. This indicates a growing interest in alternative cryptocurrencies beyond Bitcoin.
Overall, the cryptocurrency market is experiencing a period of significant growth and interest from investors. The rise of Bitcoin to the seventh-largest asset in the world and the substantial inflows into U.S. ETFs demonstrate the increasing mainstream acceptance and adoption of cryptocurrencies. As the market continues to evolve, it will be interesting to see how these trends develop and what impact they will have on the overall financial landscape.