ETFs Cross a Historic Milestone of 100 Billion Dollars

The twelve Bitcoin spot ETFs approved in the United States have collectively reached 100.55 billion dollars in assets under management this Wednesday

U.S. spot ETFs just crossed a historic milestone by surpassing 100 billion dollars in assets under management on Wednesday, in a context of continuing Bitcoin rise. This strong institutional demand is propelling Bitcoin towards new record highs.

Institutions Flock to Bitcoin ETFs

The twelve Bitcoin spot ETFs that were approved in the United States have now collectively reached 100.55 billion dollars in assets under management on Wednesday, which represents about 5.4% of Bitcoin’s total market capitalization.

BlackRock continues to overwhelmingly dominate the market with its IBIT fund that now totals 45.4 billion dollars in assets. Grayscale’s GBTC comes in second with 20.6 billion dollars.

These ETFs are seeing strong investment flows, with 733.5 million dollars of net inflows on Wednesday, after 837.36 million the day before. BlackRock's IBIT fund continues to attract the majority of capital with 626.5 million dollars of new investments, while Fidelity's FBTC captured 133.9 million dollars.

The daily trading volume on these ETFs also remained high, reaching 5.09 billion dollars on Wednesday, in a slight decrease from the 5.71 billion dollars the day before.

Bitcoin Continues to Surge

This strong institutional demand is also pushing Bitcoin towards new record highs, with the cryptocurrency now trading around 98,000 dollars, up 3.8% over 24 hours.

The growing involvement of traditional players is also confirmed with the announcement of MicroStrategy, which plans to raise 2.6 billion dollars to continue its Bitcoin acquisitions, after already buying 51,000 BTC last week at 88,617 dollars each.

The open interest on Bitcoin contracts has surged to 63 billion dollars, with a daily increase of 6 billion dollars, while implied volatility hits 60, suggesting possible significant price movements as the psychological threshold of 100,000 dollars approaches.

In summary, this symbolic milestone of 100 billion dollars in assets under management for Bitcoin ETFs reflects the growing maturity of the crypto market and its accelerated adoption by institutional investors. The next challenge for Bitcoin will be to maintain this momentum while managing the inherent volatility related to profit-taking around record levels.