Bitcoin ETFs Attract Record Inflows Amid China ETF Woes
Bitcoin exchange-traded funds (ETFs) continue to demonstrate robust investor demand as spot BTC ETFs in the United States recorded a staggering $2.42 billion in inflows during the week of Nov. 18–22. This marks their fourth-largest weekly inflow since their introduction in January, highlighting them growing appeal amid global economic uncertainty.
Spot Bitcoin ETFs Witness Fourth-Best Week
Inflows have paralleled the price rise of Bitcoin, which posted a fresh all-time high of $99,800. Analysts say the momentum reflects renewed interest in BTC as a hedge against macroeconomic instability. The price of Bitcoin surged by more than 40% in November, partly driven by the result of the U.S. presidential election.
China ETFs See Historic Outflows
Meanwhile, China-based ETFs had a record week of outflows as investors pulled $2 billion, the largest in the nation’s ETF history. The iShares China Large-Cap ETF witnessed withdrawals amounting to $984 million, which marked its fifth week of negative flows consecutively. A host of stimulus measures by the Chinese government has done little to alleviate fears of a possible economic downturn and denting consumer confidence.
Economic Concerns Push Bitcoin Up
Historically, economic uncertainty and financial instability have acted in favor of BTC. Events such as the crisis in U.S. banking earlier this year in 2023 further solidified BTC reputation as a safe haven. That trend continues as fears over China’s slowing economy have investors looking for alternatives.
Record Monthly Gains for Bitcoin
The November performance has been quite remarkable for them, up nearly 48% on the monthly chart.ETF inflows during this time pushed Bitcoin-focused funds over the $100 billion mark in net assets. As traditional financial markets falter, Them is gaining further traction as a decentralized alternative.
Will Bitcoin Break $100K?
That’s with $9.7 billion of stablecoin inflows to exchanges so far this month, with some analysts predicting that BTC will break above $100,000 before the end of November. Yet others are more circumspect. The CEO of Crypto.com, Kris Marszalek, said the market might need to go through a period of deleveraging before Bitcoin could achieve sustained growth above the six-figure mark.
With continued interest in BTC from both institutional and retail investors, its latest rally has underlined the growing importance of the cryptocurrency in a turbulent world financial system. Though not without significant challenges, the resilience of BTC and its record-setting performance cement its position as a key participant in an evolving economy.
