Rising Institutional Demand Boosts Bitcoin & Ethereum ETF Trading Volumes

The institutional desire for Bitcoin continues to grow, as US spot Bitcoin ETFs experienced their busiest trading day in over 7 months. According to Bloomberg ETF analyst James Seyffart, overall daily volume was $7.22 billion on November 11, the sixth biggest ever.

Not only has Bitcoin seen unprecedented demand and price increases in the last week, but so have American spot exchange-traded funds (ETFs) following Donald Trump’s presidential victory.

According to CoinShares data, investors were ravenous for crypto goods last week, investing roughly $2 billion in investment funds that offer exposure to digital assets.

The majority of this money was invested in Bitcoin ETFs. BlackRock’s IBIT accounted for half of the volume—roughly $4.6 billion worth of shares traded today, followed by FBTC, which exceeded $1 billion.

https://twitter.com/DefiMoon/status/1856157369471791135

The rise follows IBIT’s previous record-breaking performance last Thursday, when it traded more almost $4 billion in shares, the largest daily volume since its inception.
However, that day’s activity resulted in a net outflow of $69 million, followed by more than $1 billion in net inflows the next day—the highest single-day capital infusion since its formation.

Bitcoin has surpassed silver in market capitalization, reaching $1.736 trillion and ranking as the world’s eighth largest asset, on Monday. This feat coincided with a 10% increase in Bitcoin’s price, which soared beyond $88,000 in a single day.

ETF specialist Eric Balchunas stated that strong trading volumes can imply both buying and selling activity. Market analysts may need several days to ascertain whether the recent volume rise will result in persistent net inflows.

The increase in Bitcoin ETF trading volumes coincides with Bitcoin’s bullish momentum following the election. Following Donald Trump’s victory, which many believe is beneficial to crypto policy, there was a surge of confidence, which likely supported both the Bitcoin price increase and the matching boost in ETF trading volumes.

A combination of a favorable macro environment and seismic shifts in the U.S. political system are plausible reasons for such encouraging investor attitude, stated a Monday analysis by CoinShares, referring to Trump’s election victory last week.

It also stated that the total amount of assets under management (AUM) across all of the funds it tracks, including those in Europe and Asia that provide exposure to other major coins and tokens, has reached a new all-time high of $116 billion.

https://twitter.com/CoinFusionX/status/1856047481500385347

Ethereum ETFs Record $157M Inflows, Led by Fidelity and BlackRock

According to the research, investors also sought to invest in Ethereum, pumping $157 million into funds throughout the world last week, with the new American Ethereum ETFs enjoying their largest inflows since they began trading in July.

According to Farside Investors and preliminary data from crypto news aggregator Tree News, the Fidelity Ethereum Fund (FETH) led the field with $115.5 million in inflows, a record for the fund, followed by the BlackRock-issued iShares Ethereum Trust ETF (ETHA) with $100.5 million.

The Grayscale Ethereum Mini Trust ETF (ETH) closed out the top three with $63.3 million in inflows, whereas the Bitwise Ethereum ETF (ETHW) received $15.6 million. All other US spot Ether ETFs had no inflow.

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Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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