And in an unprecedented buying spree, Bitcoin spot exchange-traded funds or ETFs in the United States witnessed a net inflow of $893.21 million on Wednesday. This figure makes it the second-largest total on record after only March 12, which saw an inflow of $870 million, according to SoSoValue.
Ishares Bitcoin Trust from BlackRock was the largest single draw, with $872 m over three and a half billion in one-day net flow. IBIT remains the largest since its inception in January. Analysts have explained this as being due to current market and political trends that might have influenced investors’ investment decisions.
Besides that, several other U.S. Bitcoin spot ETFs posted minor but distinctly positive fund flows alongside the record-breaking IBIT. While FBTC only attracted $12.57 million of fresh money, Ark Invest and 21Shares’ ARKB, VanEck’s HODL, and Invesco’s BTCO picked up less than $8 million. However, there is evidence that institutional investors are gradually increasing their exposure to Bitcoin. Institutional investors BITWise’s BITB fund recorded a net outflow of $23.89 million, and Grayscale’s GBTC recorded no change in net inflow.
Still, on Wednesday, there were strong inflows totalling $1.97 billion in trading volume in Bitcoin ETFs, down from $4.75 billion in the previous trading day. However, this increase has taken cumulative net inflows for the U.S. Bitcoin ETFs to $24.18 billion, which signifies and affirms a strong and constant interest in digital asset funds.
According to many market analysts, the US Presidential elections scheduled on November 5 have helped fuel more investments in the Bitcoin ETF since investors want to protect themselves against any policy changes this election may bring. Still, with betting site Polymarket positioning ex-President Donald Trump as the leader and FiveThirtyEight’s polling giving Kamala Harris a slight lead.
Bitcoin’s Increasing Demand Amid Economic Uncertainty and Political Instability
This increases Bitcoin’s value as the market looks for a more stable coin in case of turbulent economic changes, the uncertainty of leadership, and policy direction. This market enthusiasm is reflected in the fluctuation of Bitcoin prices; as of Wednesday, it stood at $72,300, -0.28% down from earlier in the week, which saw Bitcoin relatively close to its all-time high of approximately $73,500.
Substantial inflows into the IBIT probably exceeded 1 million bitcoins across all spot ETFs listed in the United States, according to Eric Balchunas, a senior exchange-traded fund analyst at Bloomberg. By November’s end, Balchunas opines that Bitcoin spot ETFs may own more Bitcoin than its founder, Satoshi Nakamoto, with roughly 1.1 million BTC.
Investors poured millions into almost any form of Bitcoin ETF, while Ether spot ETFs also recorded a small net inflow of $4.36 million, of which Fidelity’s FETH ETF attracted $5.32 million. However, on Wednesday, Ether ETFs’ cumulative trading volume of $220 million was slightly below the early market forecast.
Combined, digital asset investment products have recorded an inflow of $27bn YTD, more than threefold the prior year’s record of $10.5bn. The rapid change in the market shows that stability and high rates of Bitcoin ETFs indicate a strengthening trend for digital currencies in the context of shifting political and economic environments.
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