Bitcoin ETFs Set New Record With Over $66 Billion in Assets

The twelve U.S.-based spot Bitcoin exchange-traded funds (ETFs) have reached a new milestone, logging their highest total net asset value since their launch in January. According to SoSoValue data, the combined value of Bitcoin held in these ETFs now exceeds $66.1 billion. Surpassing the previous record of $62.6 billion set in early June.

This record-breaking total represents approximately 4.89% of Bitcoin’s total market capitalization. Underscoring the growing influence of these ETFs on the broader cryptocurrency market. The surge in ETF asset value was driven by both rising inflows and an increase in Bitcoin’s price. Which has jumped about 12% since October 10, reaching over $68,000.

Strong Inflows Push ETFs to New Highs

The funds experienced their best trading week for inflows since March, with over $2.1 billion flowing in during the past week, marking their fourth-best week ever. This extended the funds’ ongoing streak of positive inflows to six consecutive days. The cumulative inflows for Bitcoin ETFs crossed the $20 billion mark on Wednesday, a significant milestone.

According to Bloomberg senior ETF analyst Eric Balchunas, reaching this level of inflows is a notable achievement. He highlighted that it took gold ETFs about five years to reach the same cumulative inflows. Underscoring the rapid growth of Bitcoin ETFs in a relatively short time.

BlackRock Leads the Surge

BlackRock’s IBIT ETF was the largest individual gainer among the funds, accruing more than $3 billion in asset value over the past week. In total, the value of Bitcoin held by the ETFs has increased by around $11 billion since the last trading day that recorded a net outflow on October 10.

The rising price of Bitcoin has been a significant factor in boosting the value of each ETF. As Bitcoin’s price has risen, so has the overall value of the assets held by these funds, contributing to the record-breaking net asset value.

Options Trading Coming Soon for Bitcoin ETFs

The U.S. Securities and Exchange Commission (SEC) recently granted “accelerated approval” for several exchanges, including NYSE and Cboe, to begin listing options trading for several of the top Bitcoin ETFs. Among the funds that will soon offer options trading are the Fidelity Wise Origin Bitcoin Fund, ARK21Shares Bitcoin ETF, and the Invesco Galaxy Bitcoin ETF, as well as funds from Grayscale, Valkyrie, and VanEck.

While the approval has been fast-tracked, the timeline for when these options will be officially listed remains unclear. However, the expansion of trading options is seen as another positive development for the ETF market, providing more ways for investors to gain exposure to Bitcoin.

Conclusion

The new record of over $66.1 billion in net asset value for U.S.-based spot Bitcoin ETFs demonstrates the growing popularity of these funds as a means of accessing Bitcoin exposure. The surge in inflows, combined with the recent price increase of Bitcoin, has pushed these funds to new heights. As the SEC continues to approve additional trading features, such as options trading, the future for Bitcoin ETFs looks increasingly promising.