Bitcoin BTC/USD spot ETFs recorded a substantial net inflow of $1.114 billion yesterday, marking an all-time high as the cryptocurrency touched near $90,000 levels on Tuesday morning.
What Happened: BlackRock's Bitcoin ETF IBIT led the charge with a daily turnover of $4.65 billion and a net inflow of $756 million. Fidelity's Bitcoin ETF FBTC also saw significant traction, bringing in a net inflow of $135 million, according to data from SoSo Value.
Ethereum ETH/USD spot ETFs mirrored Bitcoin’s surge in popularity, reaching a record daily inflow of $295 million on Nov. 11.
Fidelity's Ethereum ETF FETH brought in $115 million, while BlackRock's ETHA posted a net inflow of $101 million, showing growing investor interest in both leading cryptocurrencies.
Why It Matters: According to QCP Capital, Bitcoin's rally, driven in part by the outcome of the U.S. presidential election, reflects a structural shift in capital allocation.
“Since the election, gold has declined by 5%, while Bitcoin has surged by 30%, signaling a shift as Bitcoin gains traction as ‘digital gold,'” QCP Capital noted.
The firm further emphasized Bitcoin's potential for future growth, suggesting that even a small reallocation of capital from gold to Bitcoin could propel the cryptocurrency to approximately $97,000, given Bitcoin's current market cap of $1.73 trillion compared to gold's $17.5 trillion.
QCP Capital highlighted the heightened interest in long positions, particularly options targeting $110,000 and $120,000 strike prices.
With strong demand for leverage and margin, traders are positioning themselves for a potential further breakout as Bitcoin approaches the critical $90,000 level.
The ETF inflows and price surges reflect a broader change in sentiment toward Bitcoin and digital assets following the U.S. election.
Read Also: Polymarket Bettors Say 60% Likelihood Bitcoin Crosses $100K This Year
What Experts Are Saying: Songping Que, Senior Manager at Neo Blockchain, said in a note shared with Benzinga that the outcome of the U.S. presidential election confirmed crypto as a mature asset class in the eyes of the global investor community.
He emphasized that the market’s response shows the relevance of Bitcoin and crypto assets in gauging shifts in global capital markets.
Que also pointed to the rising influence of betting platforms like Polymarket, which accurately reflected election odds faster than traditional pollsters, attracting significant investor interest.
This trend, according to Que, could become even more impactful in future elections as betting markets grow.
Philippe Bekhazi, co-founder and CEO of XBTO, attributed Bitcoin's post-election rally to the supportive stance of Republicans toward digital assets.
“Bitcoin has reacted to the Trump election win, reaching a new all-time high overnight,” Bekhazi told Benzinga. “This positive market trend could continue well into the future, especially as a robust regulatory framework for crypto is on the way.”
Bekhazi suggested that increased retail and institutional adoption, driven by regulatory clarity, could see Bitcoin continue its upward trajectory, potentially approaching $100,000 in 2025.
Speaking with Benzinga, Lennix Lai, Chief Commercial Officer at OKX, said he sees the Trump administration's supportive stance on crypto as a turning point for the industry.
“Today’s all-time high, driven by Trump's election win, signals that we are in the midst of a potential paradigm shift into the next phase of growth for crypto,” Lai said.
He highlighted the potential for the U.S. to strengthen its position as a regulated crypto hub, which could have significant global implications.
However, Lai cautioned about potential volatility, noting that the market’s reaction to Trump's win may result in short-term fluctuations before reaching further highs.
What’s Next: The ongoing surge in fund inflows and Bitcoin's rapid price increase will be a focal topic at Benzinga's Future of Digital Assets conference on Nov. 19.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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