Bitcoin (BTC) and Ethereum (ETH) Spot ETFs See a Capital Influx, MicroStrategy Discloses $4.6B Worth of Bitcoin Acquisition

Bitcoin Spot ETFs have seen a remarkable influx of capital, recording $490 million in inflows on November 22, marking the fifth consecutive day of positive momentum.

Bitcoin Spot ETFs saw a remarkable influx of capital on November 22, recording $490 million in inflows, marking the fifth consecutive day of positive momentum.

The total net asset value of Bitcoin Spot ETFs has now soared to $107.488 billion.

MicroStrategy, led by Michael Saylor, disclosed on Monday that it had acquired $4.6 billion in Bitcoin. The firm also announced plans to raise an additional $1.75 billion through convertible notes to bolster its cryptocurrency holdings.

Recently, MicroStrategy completed an offering of 0% convertible senior notes due in 2029, successfully raising $3 billion earmarked for further Bitcoin purchases. This offering included an initial $2.6 billion, with an additional $400 million issued through an option exercised by initial purchasers, finalised on Thursday.

Similarly, Metaplanet has unveiled plans to raise $11.3 million through a new series of ordinary bonds to support its Bitcoin acquisition efforts.

In a related development, digital asset prime services platform Abra has launched a service aimed at corporates looking to hold cryptocurrencies as reserve assets on their balance sheets.

Meanwhile, Ethereum Spot ETFs saw a total of $91.2 million in inflows on November 22, reversing six consecutive days of outflows.

BlackRock’s ETHA ETF contributed significantly to these inflows, accounting for $99.67 million of the total.

Cboe Global Markets Inc. is set to launch the first cash-settled index options linked to Bitcoin’s spot price on December 2. These options will be based on Cboe’s ETF Index, which monitors a selection of U.S.-listed spot Bitcoin ETFs.

These options will be available for trading on the Cboe Options Exchange, pending regulatory approval. The launch follows Nasdaq’s recent introduction of Bitcoin ETF options, providing investors with new tools to hedge risks or speculate on Bitcoin price movements through derivatives.

Historically, crypto derivatives such as options and futures have been predominantly traded outside the U.S. This is due to the lack of approval for cash-settled crypto derivatives in the U.S., which has led to a flourishing derivatives market in places like Singapore and Dubai.

However, growing institutional interest and a more accommodating regulatory landscape have encouraged major exchanges like Cboe to expand their offerings. Other industry players, including Grayscale and BlackRock, are also increasing their presence in options trading, enhancing market liquidity and attractiveness.

As Bitcoin ETFs continue to gain traction, they now hold 5.33% of all mined Bitcoin. Significant price peaks observed in March and November were closely linked to $4 billion in ETF inflows, underscoring the influence these funds exert on market dynamics.

Earlier this month, Bitcoin ETF trading volumes reached $7.22 billion, while Ethereum ETFs recorded $295 million in inflows, bolstered by institutional interest from firms like BlackRock and Fidelity. BlackRock’s Bitcoin ETF remains a market leader, with assets under management reaching $40 billion, placing it among the top 1% of global ETFs.