In a stunning display of Bitcoin’s growing dominance, the world’s leading cryptocurrency has just become the seventh largest asset on the planet, surpassing oil giant Saudi Aramco. This momentous milestone comes as Bitcoin’s market share in the crypto space hits a new all-time high of 61.38%, while its price soars past the $93,000 mark.
The recent surge in Bitcoin’s fortunes can be largely attributed to two key factors: the pro-crypto stance of U.S. President-elect Donald Trump during his successful campaign, and the massive inflows into U.S.-based exchange-traded funds (ETFs). With Republicans now in control of both the House and Senate, the stage is set for favorable crypto regulations that could further fuel Bitcoin’s ascent.
ETFs Drive Unprecedented Demand
Over the past six trading days alone, Bitcoin ETFs have seen a staggering net inflow of $4.7 billion, with over $510.1 million pouring in on Wednesday alone. Since their introduction in January, these ETFs have attracted a whopping $28.2 billion in total, according to data from Farside.
While there were initial concerns that these inflows were part of a basis trade rather than pure long positions, it appears that investors are increasingly moving away from this neutral strategy as time goes on. Analysts now argue that the bulk of the demand is coming directly from ETFs.
Bitcoin ETFs are now the main driver of Bitcoin demand, absorbing nearly all the selling from long-term holders. Open interest on CME is not growing significantly, confirming that this is a spot-driven rally.
– Checkmate, Analyst
BlackRock’s IBIT Shatters Records
Leading the charge is BlackRock’s iShare Bitcoin Trust (IBIT), which continues to break trading volume records, hitting the $5 billion mark for the first time on Wednesday. According to Eric Balchunas, senior analyst at Bloomberg, only three ETFs and eight stocks saw more action that day.
I thought things would cool off, but no, IBIT just hit $5B in volume for the first time ever today. Up to $13B for 3 days this week. Its competitors are seeing elevated volume too but on a smaller scale – FBTC did $1B, biggest day since March.
– Eric Balchunas, Bloomberg Senior Analyst
Ethereum ETFs Gain Traction
Ethereum, the second-largest cryptocurrency by market cap, is also benefiting from the growing interest in U.S. spot-listed products. On November 14, ETH-based ETFs saw an additional $146.9 million in inflows, bringing the total net inflows to $241.7 million, as per Farside data.
As Bitcoin continues its upward trajectory, breaking records and capturing an ever-larger share of the crypto market, it’s clear that institutional investors are taking notice. With favorable regulatory winds on the horizon and ETFs providing a convenient on-ramp for big money, the future looks brighter than ever for the king of cryptocurrencies.
Will Bitcoin’s dominance continue to grow, or will altcoins stage a comeback as the crypto revolution gains steam? Only time will tell, but one thing is certain: the financial world will never be the same as digital assets take their rightful place on the global stage.
