Bitcoin Surpasses Saudi Aramco, Reaches Record High Amid $4.7 Billion ETF Inflows

Bitcoin has recently made headlines by becoming the seventh-largest asset in the world, surpassing Saudi Aramco. Its dominance in the cryptocurrency market has climbed to an impressive 61.38%. In just the past six trading days, U.S. spot-listed exchange-traded funds (ETFs) have seen over $4.7 billion in net inflows.

As the largest cryptocurrency by market cap, Bitcoin (BTC) has gained significant traction. It recently overtook oil giant Saudi Aramco, solidifying its position as a key player in the financial landscape. Prices have soared to over $93,000, hitting a record high on Wednesday.

One major factor behind this surge is the pro-crypto stance of U.S. President-elect Donald Trump during his campaign. With the Republicans winning control of the House, this political shift is likely to favor cryptocurrency regulations, which could positively impact prices.

Another driving force behind Bitcoin’s success is the massive inflow into U.S. spot-listed ETFs. In just six trading days, these ETFs have attracted a remarkable $4.7 billion, including over $510.1 million on Wednesday alone. Since their launch in January, total inflows have reached $28.2 billion, according to Farside data.

Questions have arisen about whether these inflows are tied to basis trading or net long positions. However, it seems investors are moving away from basis trading, a neutral strategy that is becoming less common.

Analyst Checkmate highlights that most of the current demand for Bitcoin is driven by ETFs. They state, “The Bitcoin ETFs are the primary force behind Bitcoin demand right now, absorbing almost all the selling from long-term holders. CME open interest isn’t growing significantly, which reinforces that this rally is driven by spot demand.”

BlackRock's iShare Bitcoin Trust (IBIT) continues to break records, recently hitting $5 billion in trading volume for the first time. Eric Balchunas, a senior analyst at Bloomberg, remarked, “I thought things were cooling off, but no, IBIT just saw $5 billion in volume today for the first time ever. Only three ETFs and eight stocks saw more action today. Up to $13 billion in three days this week. Its peers are seeing increased volume too, but on a smaller scale. FBTC had its biggest day since March with $1 billion.”

Meanwhile, Ethereum’s ether (ETH) is also gaining traction in U.S. spot-listed products. On November 14, it saw an additional inflow of $146.9 million, bringing its total net inflow to $241.7 million, according to Farside data.