🌎 Bitcoin ETF Inflows Hit $2.73 Billion

Bitcoin ETF Inflows Reach $2.73 Billion Amid Growing Institutional Interest

Bitcoin exchange-traded funds (ETFs) experienced a significant surge in inflows, attracting $2.73 billion this week. This influx was driven by optimism surrounding a more crypto-friendly regulatory environment under the new administration.

Weekly Inflows and Market Performance

The 12 Bitcoin ETFs recorded positive inflows throughout the week, with the highest inflows of $766 million on December 5. This coincided with a 50% surge in daily ETF trading volume, as Bitcoin surpassed the $100,000 mark to reach a new all-time high of $103,679.

However, inflows into spot BTC ETF offerings dipped to $376.59 million on December 6, as Bitcoin dropped below $97,000. The market experienced significant liquidations, exceeding half a billion dollars in a single day.

ETF Performance and Holdings

Weekly inflows reached $2.73 billion, marking the second-best week for these investment vehicles. BlackRock’s IBIT dominated inflows for the sixth consecutive day, leading the pack with $257.03 million on December 6.

Other notable inflows include:

Fidelity’s FBTC: $120.17 million
ARK and 21Shares’ ARKB: $24.9 million
Grayscale Bitcoin Mini Trust: $6.75 million

Grayscale’s GBTC was the sole outlier, recording outflows of $32.3 million and extending its streak to four out of five days of the week.

Expert Predictions and Trends

Experts predict that U.S. institutional interest in Bitcoin through ETFs and corporate treasuries will continue to grow, driving the broader digital asset ecosystem toward global adoption.

Digital assets are evolving from speculative investments into transformative technology with widespread adoption.

Hex Trust CEO Alessio Quaglini suggests that this trend could ignite competition among nation-states to acquire Bitcoin.

Bitcoin Price Projections

Weekly inflows into Bitcoin ETFs helped push Bitcoin beyond the $100,000 mark, with experts projecting even greater heights for the leading cryptocurrency. Geoff Kendrick, the global head of digital assets research at Standard Chartered, predicted that Bitcoin could reach $200,000 by the end of 2025.

Similar projections have been made by analysts at Bitwise, citing increasing institutional demand and dwindling Bitcoin supply as key drivers.

Cautionary Notes

Despite the bullish projections, some industry experts have urged caution. Mike Novogratz, head of digital crypto bank Galaxy Digital, has warned of potential market corrections amid Bitcoin’s surge.