Bitcoin ETFs Reach Historic $100B

With total assets of $45.4 billion, IBIT by BlackRock takes the top position, while Grayscale’s GBTC comes in second with assets worth $20.6 billion. In consideration to this, the total net assets of the bitcoin exchange traded funds (ETFs) in the USA that offer spot bitcoin have now exceeded one hundred billion dollars as the price of Bitcoin soars to all time highs.

According to the SoSoValue data, as of Wednesday, the 12 spot Bitcoin ETFs had a total of 100.55 billion dollars with this amount representing about 5.4 percent of the total market cap of bitcoins. The assets under management stood at $45.4 billion for BlackRock’s IBIT, which outpaced all other offerings in the market while Grayscale’s GBTC trailed in second place with $20.6 billion in assets

Bitcoin Hits New ATH

Bitcoin itself is also hitting new level, as the price trades about $97,734 from the previous day, an increase of 4.1% within 24 hour period.

More remarkably, the funds were significantly net inflows, with Wednesday registering $733.5 million and $837.36 million on the previous day. BlackRock’s IBIT had the most inflow with $626.5 million, followed by Fidelity’s FBTC that had $133.9 million in inflow. There were smaller amounts of inflow for Bitwise’s BITB at $9.3 million and Ark and 21Shares’ joined ARKB at $3.8 million. Notably, there were no new inflows into Grayscale’s GBTC.

The total trading activity for Bitcoin ETFs was at $5.09 billion on Wednesday, a slight decline from $5.71 billion posted in Tuesday.

Even as this happens, the US Ether spot ETF continues to record outflows with $30.3 million being out on Wednesday, the fifth straight day of outflows. The trading volume for ether ETFs lowered to $338.3 million, from $345.1 million the day before.

Expert Insights on Bitcoin’s Growth

 “The main driver behind BTC’s rapid rise is still institutional involvement. We have seen large net inflows into BTC ETFs this week. By Wednesday, BTC ETFs had achieved a net inflow of $1.8 billion,”

Gracy Chen, chief executive of Bitget, released a statement. She emphasized: last week, MicroStrategy acquired 51,000 BTC for $88,617 each, and this week MicroStrategy announced its plans to raise $2.6 billion for further BTC purchases.

“It is worth mentioning that major hosting companies are about to issue $850 million worth of convertible bonds for purchasing Bitcoin. The unprecedented demand in the spot market I have seen from institutional players is why the price of Bitcoin has shot up.” At the same time, the BTC contracts open interest stands at $63 billion with increase of $6 billion in one day. The implied volatility (IV) gauge for BTC has also soared to 60 which translates to higher chances of extreme price movements in the market within the specified time frame.

Bitwise Asset Management’s New Initiatives

According to Chen, short-term capital has a way of making profits quickly which results in price stress as it often occurs around the $100K region.

Bitwise Asset Management has submitted a Delaware application for a trust to support its proposed Bitwise Solana ETF, a step toward the establishment of the fund as further developments are witnessed in the crypto ETF market. In so doing, should the solicitated approval be granted, Bitwise’s status will be at par with the institutional managers such as VanEck and 21Shares who have also applied for Solana-centric ETFs.

This happens after a couple of weeks when the firm’s publishing of a Draft S-1 registration for an IPTX XRP ETF, has been made. The firms that provide tenders to construct new management companies targeting a segment in the business that relies on Solana, the native crypto of Ripple have been quite remarkable. Still, the company values accolades for its spectacular path expansion in the course of the year 2024 as it had AUM of $5 billion including 15 October – a growth of 400 % since the beginning of the year. Likewise, BITB, camarader’s patent-pending spot Bitcoin ETF has performed relatively well managing approximately $2.3 billion net inflows on the record since inception following only BlackRock and Fidelity and its offering.