BTC Eyes $100K as US Spot ETFs Break Through $100 Billion

• Bitcoin is approaching US$100k, a surge supported by the rapid growth of US spot Bitcoin ETFs, which now manage over $100 billion in assets.
• The 11 Bitcoin ETFs are now closer to overtaking gold ETFs, which currently hold US$120B in assets.
• Market observers are predicting Bitcoin could exceed $100,000 by the end of 2024, spurred by potential regulatory changes and institutional demand.

Bitcoin (BTC) is nearing the US$100k (AU$153K) milestone, currently trading at US$98,600 (AU$151K) after a 4.6% increase in the last 24 hours. 

This surge follows significant developments in the cryptocurrency market, including the rapid success of US spot Bitcoin exchange-traded funds (ETFs), which have just surpassed US$100B (AU$153B) in assets under management.

Related: Bloomberg: Trump Considers Establishing First-Ever White House Crypto Role

BlackRock’s iShares Bitcoin Trust (IBIT) is the market leader, having attracted US$30B (AU$46B) in net inflows since January. Fidelity’s Wise Origin Bitcoin Fund (FBTC) follows with US$11B (AU$16.9) in inflows this year. 

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IBIT Sees Highest Daily Trading Volume

On November 6, a day after the election results, IBIT experienced its highest trading volume to date, with inflows totaling US$1.1B (AU$1.69B).

This brings them closer to surpassing gold ETFs, as Bloomberg Senior ETF analyst Eric Balchunas said, which currently hold around US$120B in assets under management. 

Balchunas highlighted that Bitcoin ETFs are now 97% of the way to overtaking Satoshi Nakamoto’s estimated Bitcoin holdings and 82% of the way to surpassing gold ETFs in terms of net assets.

Investors are increasingly favoring Bitcoin and gold as part of a “debasement trade”, hedging against potential economic instability and rising geopolitical tensions. This trend has driven the adoption of Bitcoin ETFs as a preferred investment vehicle, offering exposure to cryptocurrency in a regulated and accessible format.

Market analysts predict Bitcoin will reach or exceed US$100,000 by the end of 2024, with some anticipating continued growth into 2025 as potential regulatory shifts might occur in the Securities and Exchange Commission (SEC) now that Gary Gensler has resigned as the Chairman.

Related: SEC Postpones Crypto Index Decision as Shanghai Judge Issues Landmark Opinion

In a similar fashion, MicroStrategy’s market capitalisation also reached US$100B, surpassing heavyweights like Tesla and Nvidia in Trading volume.