Bitcoin ETFs Surpass $100 Billion in Assets, Nearing Gold ETFs

According to Bloomberg Intelligence, U.S. Bitcoin (BTC) ETFs' net assets surpassed $100 billion for the first time on November 21.

U.S. Bitcoin (BTC) exchange-traded funds (ETFs) reached a new milestone on Monday, with their net assets crossing the $100 billion mark for the first time.

The ETFs have rapidly gained ground on gold ETFs this year, highlighting a shift in asset investment trends.

According to Bloomberg Intelligence, the total net assets of U.S. Bitcoin ETFs reached $104 billion on November 21.

This marks a significant increase from the beginning of 2024, when the net assets of Bitcoin ETFs stood at only $7 billion.

The launch of spot BTC ETFs in January quickly propelled Bitcoin to become the leading asset in the exchange-traded fund market.

Following the U.S. presidential election on November 5, which saw Donald Trump clinch the victory, investor sentiment toward crypto-friendly assets picked up steam.

Currently, Bitcoin ETFs hold around $104 billion in assets. They are closing in on overtaking gold ETFs in terms of net assets, with the latter having a combined AUM of nearly $120 billion as of November 21, according to the Bitcoin Archive.

"Crypto ETFs are now 97% of the way to passing Satoshi as the biggest holder and 82% of the way to passing gold ETFs," Eric Balchunas, an ETF analyst for Bloomberg Intelligence, stated in a post on the X platform on November 21.

BlackRock, Fidelity Lead in Bitcoin ETFs

Among the cryptocurrency trusts, the highest inflows this year went to BlackRock's iShares Bitcoin Trust (IBIT), which received $30 billion in net inflows since January, according to Bloomberg.

The second most popular Bitcoin exchange-traded fund (ETF) in 2024 was Fidelity Wise Origin Bitcoin Fund (FBTC), which had over $11 billion in investors' money, according to Bloomberg.

After Trump's victory, the market for cryptocurrencies surged, as many people believe that his presidency will be favorable for the cryptocurrency industry, according to Cointelegraph.

According to Google Finance data, on November 21, spot Bitcoin was trading at over $96,000, up nearly 120% since the beginning of 2024.

Following the investor's rush to cryptocurrency in response to Trump's election victory, IBIT had its "biggest volume day ever" on November 6, according to a post by Balchunas on Nov. 6 X.

Record Inflows Show Investor Confidence

After two days of outflows that totaled $113.3 million, IBIT regained its status as an inflow on November 7, with $1.1 billion in inflows, according to Farside data.

According to MV Global, the price of one bitcoin is predicted to reach $100,000 to $150,000.

Despite launching only in January, BlackRock's IBIT already has more assets than the asset manager's gold ETF, according to BlackRock's data.

Investors are shifting their attention toward gold and Bitcoin in what they are calling a "debasement trade" in anticipation of a "catastrophic scenario" fueled by rising geopolitical tensions, according to research by JPMorgan on Oct. 3.