The rising adoption of Bitcoin ETFs coincides with Bitcoin reaching the long-anticipated $100,000 price milestone.
US exchange-traded funds (ETFs) focused on directly investing in Bitcoin BTC $78 788 24h volatility: 1.1% Market cap: $1.57 T Vol. 24h: $83.50 B are experiencing unprecedented demand, fueled by President-elect Donald Trump‘s promise to lift regulatory barriers within the crypto industry. On December 5, these investment vehicles recorded an impressive $766 million in daily inflows, marking the highest single-day total of the week and pushing the weekly inflow figure to $2.35 billion, according to data from SoSoValue.
Institutional Appetite Surges
The heightened interest in these funds signals a growing speculative enthusiasm for crypto following Trump’s election win on November 5. During his campaign, the president-elect pledged to support the industry by introducing clear regulatory frameworks and exploring the potential for Bitcoin to be considered a reserve asset.
Trump’s pro-crypto stance has inspired confidence in digital assets, attracting traditional investors who prefer gaining market exposure through ETFs rather than holding the assets directly.
On Thursday, this group of investors purchased $770 million worth of BlackRock’s iShares Bitcoin Trust (IBIT), making it the best-performing ETF for the day. According to data from SoSoValue, IBIT has amassed a cumulative net asset value of $34 billion.
With its strong ETF portfolio, BlackRock currently controls approximately 3% of Bitcoin’s circulating supply. The company’s spot Bitcoin ETFs have consistently attracted significant inflows, even during bearish market conditions, and have contributed over $50 billion in market cap flows since their inception.
Apart from BlackRock’s IBIT, other crypto funds like Fidelity Wise Origin Bitcoin Fund (FBTC) and ARK 21Shares Bitcoin ETF (ARKB) also drew notable investor attention on Thursday, logging $47 million and $12 million in inflows, respectively.
Bitcoin Hits $100K Milestone
The rising adoption of Bitcoin ETFs coincides with Bitcoin reaching the long-anticipated $100,000 price milestone. Earlier this week, the leading crypto asset by market capitalization set a new all-time high of $103,000, breaking through the psychological $100K barrier.
Bitcoin’s journey began in 2008 with the release of its whitepaper by the pseudonymous creator, Satoshi Nakamoto, and its launch as the world’s first digital currency in 2009. Today, it has solidified its position within the global financial system, offering opportunities for financial independence.
Market analysts expect Bitcoin’s price to continue climbing. Renowned commodity trader Peter Brandt predicts Bitcoin could reach $150,000 by August 2025. Similarly, Standard Chartered, a global banking giant based in the United Kingdom, anticipates Bitcoin hitting $150,000 by the end of this year, driven by the surging demand for ETFs.
The bank asserts that the increasing adoption of Bitcoin ETFs will significantly propel the asset’s value to unprecedented heights.
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