Bitcoin (BTC) has reached a new milestone, with U.S. Bitcoin exchange-traded funds (ETFs) surpassing $100 billion in assets. As of Nov. 21, 2024, Bitcoin ETFs total over $104 billion in assets, fueled by a strong market boost following the U.S. presidential election. This surge has pushed Bitcoin’s price above $96,000, marking a significant rise from the start of the year, with some experts predicting it could reach $100,000–$150,000 per coin.
Bitcoin ETFs have played a key role in this surge, especially after the launch of spot BTC ETFs in January 2024. BlackRock’s iShares Bitcoin Trust (IBIT) has attracted $30 billion in inflows, while Fidelity’s Wise Origin Bitcoin Fund (FBTC) has pulled in over $11 billion. These ETFs have helped Bitcoin approach the market capitalization of gold ETFs, which hold around $120 billion in assets. As it stands, Bitcoin ETFs are 82% of the way to surpassing gold in assets, according to Bloomberg’s Eric Balchunas.
Despite the rapid growth, some analysts, including Galaxy Digital’s Mike Novogratz, are cautioning about a potential market correction. Novogratz predicts that Bitcoin could dip to $80,000 in the near future, citing high levels of leverage in the crypto community. Bitcoin’s rise is not just limited to the price of the coin but also extends to companies like MicroStrategy, which holds over 331,000 BTC and plans to raise $3 billion to buy more. Other companies like Marathon Holdings are also increasing their Bitcoin holdings.
Bitcoin ETFs have been seeing record trading volumes, with over $70 billion traded recently. Grayscale’s GBTC, the second-largest Bitcoin ETF, holds $20.6 billion, showing consistent inflows, though not as strong as BlackRock’s offerings. This strong institutional interest highlights Bitcoin’s growing appeal, although Ethereum ETFs have seen outflows, indicating some divergence in investor sentiment within the crypto space.
Bitcoin’s correlation with gold has shifted significantly, now at a negative 0.66, as it decouples from traditional safe-haven assets. Instead, Bitcoin is more correlated with stock indices like the S&P 500 and Nasdaq, showing its increasing ties with broader equity markets. Bitcoin’s implied volatility has risen to 60, suggesting that further price swings are likely, especially around the $100,000 level.
Other developments include Bitwise Asset Management’s filing for a Solana ETF, adding to the growing list of crypto-focused ETFs. The overall trend points to Bitcoin continuing to gain traction among institutional investors, but the volatility and risks associated with cryptocurrency remain high. The U.S. election results and the growth of Bitcoin ETFs will likely continue to shape the market in the coming months.
