This week, $2.73 billion poured into Bitcoin exchange-traded funds, marking a bullish turn. Analysts predict much more momentum as Bitcoin continues to rise above $100,000. Investors were hopeful that President-elect Trump would pick pro-crypto former federal regulator Paul Atkins as chair of the SEC, replacing the anti-crypto Gary Gensler, and this optimism drove strong inflows into the 12 Bitcoin ETFs to attract $2.73B inflows throughout the week.
On Dec. 5, the crypto community enthusiastically celebrated as Bitcoin rocketed beyond the elusive $100,000 mark to a new all-time high of $103,679, recording the week’s largest inflows of $766 million. Daily ETF trading volume also surged by 50% during this period. Bitcoin, the leading cryptocurrency asset, fell below $97,000 on Friday, Dec. 6, and the market saw liquidations topping half a billion dollars in a single day, causing inflows into spot BTC ETF offers to plunge to $376.59 million.
Bitcoin ETFs Attract $2.73B Despite Outflows from GBTC
The second-best week for these investment vehicles, with weekly inflows reaching $2.73 billion, was November 18-22, when they reached an all-time high of $3.38 billion. According to SoSoValue, just four out of twelve funds were able to attract capital on Friday, Dec. 6, with BlackRock’s IBIT leading the pack with $257.03 million—the sixth day in a row that it has dominated inflows.
The only fund that deviated from the norm today was Grayscale’s GBTC, which saw $32.3 million leave the fund and brings the total amount of money leaving the fund this week to $303.5 million. No transactions occurred in the other seven Bitcoin ETFs. Despite a decline in inflows toward the end of the week, U.S.Bitcoin ETFs attract $2.73B inflows have now accumulated more than 1.104 million tokens, which is more than Satoshi Nakamoto had in his holdings when he launched them.
Experts predict that the continued growth of U.S. institutional interest in Bitcoin, as demonstrated through ETFs and corporate treasuries, will propel the wider digital asset ecosystem toward worldwide adoption.
This trend could spark competition among nation-states to purchase Bitcoin, according to Hex Trust CEO Alessio Quaglini. Similar to what Petr Kozyakov, CEO and co-founder of Mercury, said about crypto. news digital assets are transitioning from speculative investments to revolutionary and widely used technology.
Bitcoin Surpasses $100K, Experts Predict $200K by 2025
Bitcoin surpassed the $100,000 milestone last week, with experts predicting much higher levels for the dominant cryptocurrency, largely thanks to weekly inflows into Bitcoin ETFs. According to a recent report by Standard Chartered’s global head of digital assets research, Geoff Kendrick, Bitcoin’s value might reach $200,000 by the end of 2025. “We would become even more optimistic if US retirement funds, global sovereign wealth funds (SWFs), or a prospective US strategic reserve fund showed a faster adoption of BTC,” he continued.
Bitwise analysts have also come to similar conclusions, with the decline in Bitcoin supply and rising demand from institutions (boosted by Bitcoin ETFs) listed as the main reasons. Despite the optimistic predictions, some market watchers have warned against getting ahead of themselves.
The CEO of digital crypto bank Galaxy Digital, Mike Novogratz, has warned about possible market corrections amid Bitcoin’s boom. He asserts that numerous market participants are overextended, indicating that we should expect volatility. Chris Burniske, a partner at Placeholder, recently expressed similar concerns, cautioning investors against overly optimistic expectations, citing the 2021 bull market as an example.
Burniske said, “Bitcoin’s brief surge past $100,000 may not be sustainable in the short term.” He said that 2021 Bitcoin peaked at $70,000 instead of the predicted $100,000 due to exaggerated expectations. Bitcoin (BTC-0.58%) was trading at the moment. Once again, Bitcoin was on the verge of exceeding $100,000, this time by just 0.4%. As of this writing, it was trading at $99,580, a 1.4% increase over the previous day.
Final Thoughts
The surge in Bitcoin ETFs, with $2.73 billion in weekly inflows, highlights growing institutional confidence in the cryptocurrency as it approaches new all-time highs. Despite some volatility and short-term fluctuations, the momentum is undeniable, fueled by investor optimism and the potential for significant adoption from large institutional players. Experts are increasingly bullish, with predictions of Bitcoin reaching $200,000 by 2025. However, caution remains, with market leaders warning of possible corrections and the unpredictable nature of crypto markets. As Bitcoin continues to rise, its evolution from a speculative asset to a widely adopted technology is underway, positioning it as a central player in the global financial landscape.
FAQs
Why did Bitcoin ETFs attract $2.73 billion this week?
Investor optimism drove these inflows, boosted by expectations of pro-crypto leadership at the SEC and Bitcoin’s price rise.
What is the outlook for Bitcoin in the coming years?
Experts predict Bitcoin could reach $200,000 by 2025, driven by increasing institutional adoption and declining supply.
Why are some experts cautious despite Bitcoin's success?
Analysts warn of potential market corrections, citing overextended positions and volatility similar to past bull markets.
How have Bitcoin ETFs impacted Bitcoin’s market?
Bitcoin ETFs have sparked growing institutional confidence, contributing to rising Bitcoin prices and greater market adoption.
