This year, institutional investors have shown an unparalleled demand for spot Bitcoin and Ethereum exchange-traded funds. The data, especially in December, continue to impress. Wall Street’s ravenous appetite drove a record-breaking $3.85 billion into digital asset funds last week.
BlackRock’s Surge in Crypto ETFs
With $3.2 billion going into BlackRock’s iShares ETFs, the firm has $56.7 billion worth of cryptocurrency assets under management. Last week, investors poured $1.2 billion into Ethereum products, setting a new record that surpassed the volumes witnessed when the U.S. spot ETH ETFs were originally approved in July.
With a total of $3.6 billion, the United States has solidified its position as the principal market for investment products using digital assets. At $160 million, Switzerland was well behind the leaders—Germany, Canada, and Australia.
This is happening as rumors circulate that when Donald Trump takes office again in January, he may approve introducing exchange-traded funds (ETFs) that track the value of smaller cryptocurrencies like Solana or XRP.
Bitcoin ETFs Exceed $109B
As of last week, even Satoshi Nakamoto, the fictitious creator of Bitcoin, does not hold as much as the Wall Street ETF issuers. CoinGlass data indicates a collective market capitalization of $109 billion. Bitcoin ETFs have reached $109 billion, surpassing both MicroStrategy.
Binance was put together. Regarding corporate treasury holdings of Bitcoin, MicroStrategy ranks first, while Binance is the most heavily traded cryptocurrency exchange in the world. Long-term Bitcoin holders have sold 827,783 BTC in the last 30 days, outselling all of this buying activity.
That may be why Bitcoin has had such a hard time keeping. Its momentum was above $100,000 when it achieved that milestone price last week. After dropping below the six-figure valuation on Monday, the price of Bitcoin is now near $97,000.
Rather than individual investors, institutional interest through exchange-traded funds (ETFs) is generally believed to have driven Bitcoin’s growth, surpassing the Australian dollar’s value and putting its market size above $2 trillion.
Trump’s Crypto support will boost ETFs
Trump’s pledge to support Bitcoin and Ethereum throughout his campaign and his impending presidential re-election also influenced the situation. David Sacks, an entrepreneur, has been selected as a “Crypto czar” by him. Paul Atkins has been chosen to head the SEC. Many in the industry see Atkins as a candidate.
Gary Gensler, the current head of the SEC, established an anti-crypto environment. According to Chris Skinner. The host of The Finanser blog and an independent financial observer, the president-elect “has made cryptocurrencies respectable.”
“The result is that ETFs will blossom over the next four years. As will the whole cryptocurrency sector,” he said in an electronic message. “This is not a Bitcoin play but a play on the institutionalization of cryptocurrency. Which the libertarians never wanted but was inevitable.”
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