Thomas Daniels
Demand for Bitcoin exchange-traded funds (ETFs) reached record-breaking levels this week, with $3.38 billion in inflows driving the total net asset value of Bitcoin spot ETFs to $107.488 billion. This marks a historic milestone as optimism surges over regulatory shifts and Bitcoin’s potential to break the $100,000 price threshold.
Record Inflows Amid Regulatory Shifts
The highest single-day inflow was observed on November 21, when $1 billion poured into Bitcoin ETFs. This coincided with the announcement that SEC Chair Gary Gensler, known for his restrictive stance on cryptocurrencies, will step down in January 2024.
Market enthusiasm propelled Bitcoin to a new all-time high of $99,800, though it failed to cross the six-figure mark. Inflows slowed later in the week, with Friday recording $490.35 million, according to SoSoValue data.
Top Fund Performers
BlackRock’s IBIT fund led inflows with $513.2 million, continuing a 12-day streak of gains. Other fund inflows for the week included:
- Fidelity’s FBTC: $21.71 million
- Valkyrie’s BRRR: $6.19 million
- Grayscale’s Bitcoin Mini Trust: $5.72 million
- VanEck’s HODL: $5.62 million
- Invesco’s BTCO: $4.96 million
Grayscale’s flagship GBTC fund was the only offering to see outflows, shedding $67.05 million, while other funds remained flat.
Experts Point to Key Catalysts
Analysts attribute the rally to two primary drivers: the upcoming 2024 Bitcoin halving and growing demand for Bitcoin as a hedge amid geopolitical uncertainties. Kadan Stadelmann, CTO at Komodo, highlighted these factors, stating they have created a “supply shock” that continues to fuel ETF demand.
Georgii Verbitskii, founder of TYMIO, noted that surpassing $100,000 would likely trigger increased mainstream and retail investor interest, potentially pushing prices even higher.
Bitcoin’s Path to $180,000
VanEck analysts Nathan Frankovitz and Matthew Sigel remain bullish, projecting Bitcoin could reach $180,000 within 18 months. This aligns with Bernstein Research’s upward revision of its 2025 target for Bitcoin to $200,000.
In a recent report, Frankovitz and Sigel compared Bitcoin’s current rally to the post-2020 election bull run, which saw the cryptocurrency double in value by year-end and gain another 137% the following year.
They emphasized a “transformative shift” in institutional interest, noting that Bitcoin’s rally is supported by a robust set of indicators and minimal technical resistance.
What’s Next for Bitcoin?
While Bitcoin hovers just shy of $100,000, analysts like Ali Martinez believe further gains are imminent. He forecasts a rise to $108,000 in the coming weeks, with a potential year-end target of $135,000.
As Bitcoin solidifies its position as a key financial asset, the ETF market’s performance underscores growing confidence among both retail and institutional investors.
