Thomas Daniels
With $6.2 billion in November inflows, U.S.-based Bitcoin exchange-traded funds (ETFs) are reaching an all-time record driven by Bitcoin’s amazing surge above $100,000 and a perhaps crypto-friendly change in legislative policy. Bloomberg predicts that if the pace keeps up, the inflows for this month might surpass the previous high of $6 billion established in February.
Key beneficiaries of this spike have been major ETF providers BlackRock and Fidelity, who indicate fresh optimism among institutional and ordinary investors. Policy commitments from President-elect Donald Trump, who seeks to eliminate limiting bitcoin rules enforced by the Biden government, help to further justify the rise of Bitcoin. Among Trump’s ideas include the creation of a national Bitcoin reserve, which market watchers think would help to increase acceptance of cryptocurrencies.
“Under a Trump administration, it’s expected to be easier for businesses and retirement funds to include Bitcoin in their portfolios.”
— Josh Gilbert, Market Analyst, eToro
Ethereum ETFs Get Popular Among SEC Changes
With $104.32 billion in total net assets as of November 27, Bitcoin ETFs rule the market; Ethereum-linked ETFs are just getting steam. Early this year, the U.S. Securities and Exchange Commission (SEC) authorized both Bitcoin and Ethereum spot ETFs, thereby transforming the landscape of crypto investment vehicles.
Though they attracted more flows over the four trading days before Thanksgiving, Ethereum ETFs have not caused the same notable price swings as Bitcoin. The resignation of eminent critic of the crypto sector Gary Gensler might open the path for further legislative clarity and expansion in ETFs tied to Bitcoin and Ethereum.
