Bitcoin Surpasses Saudi Aramco to Become the 7th-Largest Asset Globally Amidst $4.7B ETF Inflows
Bitcoin has officially claimed its position as the seventh-largest asset in the world, recently surpassing the market capitalization of Saudi Aramco. This significant milestone comes as the leading cryptocurrency reaches a dominance level of 61.38% within the crypto market, with its price peaking at an impressive record of over $93,000 on Wednesday.
A substantial factor contributing to Bitcoin's recent surge is the pro-cryptocurrency stance of U.S. President-elect Donald Trump during his election campaign. With the Republican Party securing control of the House, the outlook for cryptocurrency regulation appears favorable, which could further bolster Bitcoin prices.
In addition to the political landscape, Bitcoin has experienced a remarkable influx of capital through U.S. spot-listed exchange-traded funds (ETFs). Over the past six trading days, these Bitcoin ETFs have attracted a staggering $4.7 billion in net inflows, including more than $510.1 million on Wednesday alone. Since their introduction in January, the total net inflow into Bitcoin ETFs has reached $28.2 billion, according to data from Farside.
Initially, there were concerns about whether these inflows were driven by basis trading or net long positions. However, as the year has progressed, it appears that investors are shifting away from basis trading, which is a neutral strategy that has been declining in popularity.
Analyst Checkmate emphasizes that the current demand for Bitcoin is predominantly fueled by ETFs. In a recent post on X, they stated, "The Bitcoin ETFs are by far the majority driving force of bitcoin demand right now, soaking up almost all of the selling by Long-Term Holders. CME open interest is not growing meaningfully, reinforcing that this is a spot-driven rally."
BlackRock's iShare Bitcoin Trust (IBIT) has also been making headlines, achieving record trading volumes, surpassing $5 billion for the first time, according to Eric Balchunas, a senior analyst at Bloomberg. He noted, "I thought things were cooling off, but no, IBIT just saw $5b in volume today for the first time ever. Only 3 ETFs and 8 stocks saw more action today. Up to $13b in 3 days this week. Its peers are seeing heightened volume too, but on a smaller scale. FBTC did $1b, the biggest day since March."
Moreover, the Ethereum blockchain's ether (ETH) is also witnessing increased interest in U.S. spot-listed products, with an additional $146.9 million inflow on November 14, bringing the total net inflow to $241.7 million, as reported by Farside data.
As Bitcoin continues to dominate the market and attract significant investment through ETFs, its future looks promising, potentially setting the stage for further growth in the cryptocurrency sector.