Originally published on: November 23, 2024
In a significant turn of events for the global financial landscape, spot Bitcoin exchange-traded funds (ETFs) witnessed a surge in investments, while China-based ETFs experienced their largest outflows to date. This trend highlights the growing acceptance of Bitcoin on a global scale.
During the trading week of Nov. 18–22, spot Bitcoin ETFs based in the United States saw a total of $2.42 billion in inflows, making it the fourth-best week since their inception in January. This surge in investments follows the recent victory of Donald Trump in the 2024 presidential election, which sparked a rally in Bitcoin’s price, reaching a record high of over $99,000.
Conversely, China-based ETFs faced a challenging week, experiencing outflows exceeding $2 billion. The iShares China Large-Cap ETF (FXI), the largest China ETF, saw a record $984 million in withdrawals, marking the fifth consecutive week of negative outflows. This trend persisted despite the Chinese government implementing economic stimulus measures to alleviate concerns about a potential economic downturn.
As Bitcoin’s price continued to climb, surpassing $99,800 on Nov. 22, investors closely watched the market dynamics. While some anticipate further gains with stablecoin flows reaching $9.7 billion, others express concerns about the sustainability of the current rally. Kris Marszalek, the CEO of Crypto.com, warned about the need for deleveraging before Bitcoin can breach the $100,000 mark.
The ongoing market developments underscore the evolving landscape of digital assets and traditional investments. As Bitcoin ETFs attract significant inflows and China-based ETFs witness record outflows, the global financial markets reflect a shifting paradigm towards decentralized and digital assets. Subscribe to our newsletter for more insights on the latest developments in the financial world.
