Bitcoin (BTC) exchange-traded funds (ETFs) in the United States yesterday recorded inflows of more than $1.1 billion, the second highest figure since they went on the market in January 2024.
The most outstanding data of the day is that BlackRock’s iShares Bitcoin Trust (IBIT), the largest fund in the world, set a new record of $4.5 billion in trading volume.
In this regard, Eric Balchunas, ETF specialist at Bloomberg Research, highlighted that there was also a significant trading volume in the shares of MicroStrategy (MSTR) and Coinbase (COIN), two companies that have bitcoin in their treasuries as a store of value. “Yesterday’s trading volume was $38 billion, which is an all-time record everywhere,” he said, adding, “It really was a crazy day.”
The high trading volume reflects the interest of institutional investors in ETFsdue to the high bullish expectations in the market with the price of the currency created by Satoshi Nakamoto, since Donald Trump was elected president of the United States.
In this context, more precisely on November 7, BlackRock ETF sets record, reporting more than $1.1 billion in net inflows.
Since market launch, the 12 bitcoin-based ETFs have recorded inflows of more than $26 billion.
The good performance of these financial instruments boosted the price of BTC above $89,000its new all-time high. At the time of publication of this note, the price of the digital asset is $87,220.
As NoticiasVE has explained, the inflows of money into spot ETFs have a direct impact on the price of the digital currency. Due to its operation, the companies that manage them need to have BTC in their treasuries to support their actions.
If there is demand for ETFs, companies must go out to the market to buy more BTC and that causes the price of the asset to rise.
Record ETFs in Hong Kong
Meanwhile, ETFs in Hong Kong recorded their highest trading volume of more than $14 million.
According to data from SosoValue, The three bitcoin-based funds in that country registered inflows of more than 3 million dollarsthe highest figure since August 22.
Alex Tseng, head of sales operations at digital asset firm OSL, told The Block that “the increase in trading activities reflects increased market sentiment as traders look to capitalize on favorable conditions arising from political developments.” and post-US election clarity, along with broader adoption of cryptocurrencies.”