Bitcoin exchange-traded funds (ETFs) already have over $100 billion in assets under management. This result illustrates Bitcoin’s growing popularity as a key investment vehicle in traditional financial markets.
The rise in Bitcoin ETF assets has been fueled by huge inflows following the election of a crypto-friendly US president. More than $5 billion in fresh investments were made in November alone, led by BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC). BlackRock’s IBIT, which debuted earlier this year, has already received $30 billion in net inflows, outpacing the company’s gold ETF in total assets. Fidelity’s FBTC has also received nearly $11 billion in fresh investments this year.
JUST IN: 🇺🇸 #Bitcoin ETFs are catching up to Gold ETFs for total assets held.
— Bitcoin Archive (@BTC_Archive) November 21, 2024
$104b for $BTC
$121b for Gold
💥After just 11 months pic.twitter.com/iPd06tksQa
Along with these advancements, Bitcoin’s value has risen, rising over 120% by 2024 to over $96,000. Analysts predict that Bitcoin will eventually exceed $100,000 per coin, with some expecting even higher targets ranging from $100,000 to $150,000.
Investors’ optimism has been boosted by expectations that the new administration will create a favorable regulatory environment for bitcoin. Industry insiders anticipate the nomination of crypto-friendly authorities to key positions, further lowering uncertainties in the sector.
Bitcoin ETFs are also quickly approaching a significant milestone: surpassing gold ETFs in total assets. Bitcoin ETFs currently have $104 billion, whereas gold ETFs hold $120 billion. Experts believe this move reflects a larger trend of investors preferring digital assets over traditional safe-haven investments in the face of economic and geopolitical uncertainty.
Speaking of "100" milestones, the US bitcoin ETFs hit $100b in assets (altho more like $104b given the price surge overnight) w/ YTD flows flirting with $30b (double our estimate). They're now 97% of way to passing Satoshi as biggest holder and 82% of way to passing gold ETFs. pic.twitter.com/Y3070yW7Jx
— Eric Balchunas (@EricBalchunas) November 21, 2024
With options trading now available for several Bitcoin ETFs, including BlackRock’s IBIT and Grayscale’s Bitcoin Trust, interest in these products is expected to increase even more. The introduction of options gives investors more tools to manage risk and profit from Bitcoin’s current surge.
As Bitcoin ETFs continue to reshape the investment landscape, their rapid growth underscores the evolving role of digital assets in global finance. With their current trajectory, Bitcoin ETFs appear poised to become a major force in the financial world.
