Originally published on: November 23, 2024
Spot Bitcoin exchange-traded funds (ETFs) had a standout week with $2.4 billion in inflows, marking their fourth-largest week since their introduction. This surge in investments is a positive indicator for Bitcoin adoption on a global scale.
During the same period, China-based ETFs saw unprecedented outflows, hitting a record high of over $2 billion. This stark contrast between Bitcoin and China ETFs highlights the growing popularity of the digital asset in the investment world.
The surge in Bitcoin ETF inflows followed a significant price rally after the 2024 presidential election, where Bitcoin breached $99,000 for the first time. This momentum has been further fueled by economic concerns in the traditional finance sector, contributing to Bitcoin’s bullish trend.
Despite China’s efforts to stimulate its economy and alleviate investor worries, the largest China ETF, FXI, witnessed a record $984 million in withdrawals. This consistent trend of outflows from China-based ETFs reflects the uncertainty in the traditional financial markets.
As Bitcoin continues its upward trajectory, surpassing the $100 billion net asset milestone, experts predict further price surges in the near future. However, concerns linger over the stability of this rally, with some suggesting that a market deleveraging may be necessary before Bitcoin can breach the $100,000 mark.
The recent developments in Bitcoin ETFs and China ETFs signal a shifting landscape in the global investment space, with digital assets like Bitcoin gaining traction among investors. Stay tuned for more insights and analysis on the evolving financial landscape.