Bitcoin ETFs in Pac Man mode as investors pour in 3 billion

Bitcoin (CRYPTO:BTC) exchange-traded funds (ETFs) have experienced their most successful week since their January debut, with inflows exceeding $3.3 billion in the week ending November 22, according to data from SoSoValue.

This influx translates to 30,000 Bitcoins purchased by ETF issuers, which is approximately ten times the amount of newly minted Bitcoin generated in the same period.

Bitcoin ETFs now collectively hold more than 5% of the world’s Bitcoin supply, making them the fastest-growing ETFs in history since the investment vehicle gained popularity in the 1990s.

While funds like the Vanguard S&P 500 ETF manage over $530 billion in assets, Bitcoin ETFs have achieved milestones at unprecedented speeds.

Investment giant BlackRock’s IBIT hit a market value of $40 billion earlier this month, accomplishing this feat in just 211 days, compared to three years for BlackRock’s previous record-holder, IEMG.

Last week’s inflows coincided with BlackRock launching Bitcoin ETF options, generating nearly $2 billion in notional exposure on day one — an achievement described as “unheard of” by Eric Balchunas, an ETF analyst at Bloomberg Intelligence.

Bitcoin ETF options offer investors the ability to buy or sell Bitcoin at a specific price and date, streamlining the process without requiring crypto-specific platforms.

ETFs have been a critical factor in Bitcoin’s resurgence this year, attracting institutional investors and driving the price to new highs.

After hovering around $60,000 for much of the year, Bitcoin surged to an all-time high near $100,000 following the November 5 U.S. presidential election, breaking its 2021 record of $73,000 earlier in March.

Bitcoin ETF issuers now hold 1.1 million Bitcoin and are expected to surpass Satoshi Nakamoto — the pseudonymous creator of Bitcoin — as the largest holder of Bitcoin before the end of the year.

Analysts attribute Bitcoin’s recent rally to a mix of factors, including institutional buying sprees, central banks lowering interest rates, and MicroStrategy’s largest-ever Bitcoin purchase.

Political developments, such as a Republican sweep in the U.S. elections and Donald Trump’s re-election, have also boosted market optimism.

While Bitcoin ETFs saw $438 million in outflows at the start of this week, their performance remains historic, cementing their role in the cryptocurrency’s ongoing recovery and mainstream adoption.

At the time of reporting, Bitcoin price $92,830.36.