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Bitcoin and Ether ETFs See Record Inflows in November

Stock SpotlightMonday, Dec 2, 2024 9:43 am ET

1min read

The cryptocurrency ETF market experienced a historic surge in November. Bitcoin ETFs recorded a staggering $6.5 billion in net monthly inflows, while Ether ETFs posted $1.1 billion, marking a record for both asset classes, according to Bloomberg data. Ether ETFs also saw a daily subscription high on November 29, with $333 million in inflows driven by BlackRock Inc.'s iShares Ethereum Trust and Fidelity Investments' Ethereum Fund.

XRP continued its meteoric rise amid speculation that President-elect Trump may reverse the Securities and Exchange Commission's regulatory actions against the token, which had previously dampened its performance. The rally has fueled interest among investment firms in potentially launching XRP ETFs, adding another layer of excitement to the crypto market.

Market Sentiment and Outlook

The overall cryptocurrency market has gained approximately $1.2 trillion since Trump's election victory, data from CoinGecko reveals. However, Zhao Wei, Senior Researcher at OKX, cautions that sustaining this rally depends on the market's ability to absorb the recent positive developments and attract fresh inflows.

Bitcoin, currently in overbought territory, may face short-term correction or consolidation pressures. Zhao highlights that unique cryptocurrency cycles, macroeconomic factors, and regulatory shifts will also play critical roles in shaping market trends.

Conclusion

November's record-breaking inflows highlight growing institutional and retail interest in cryptocurrency ETFs, signaling potential for long-term growth. However, the path forward remains uncertain, with market cycles, regulatory developments, and investor sentiment likely to determine the sustainability of the current momentum.

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