Bitcoin Dominance Surges Amid ETF Inflows and Pro-Crypto Sentiment
Bitcoin (BTC) is on a historic trajectory, reaching new heights in market dominance and global asset rankings.
The largest cryptocurrency by market capitalization recently claimed the title of the seventh-largest asset in the world, surpassing oil giant Saudi Aramco. Bitcoin’s dominance within the crypto market hit an impressive 61.38%, with its price climbing to a record-breaking $93,000 on Wednesday.
Drivers of Bitcoin’s Surge
The rally is fueled by two key factors:
- Pro-Crypto Regulatory Outlook
U.S. President-elect Donald Trump’s favorable stance on cryptocurrencies during his campaign has instilled optimism in the market. The Republican Party’s control of the House further strengthens expectations for a regulatory environment conducive to crypto growth. - Record ETF Inflows
Bitcoin-focused exchange-traded funds (ETFs) in the U.S. are witnessing unprecedented demand. Over the past six trading days alone, these ETFs have recorded net inflows of $4.7 billion, including $510.1 million on Wednesday. Cumulatively, ETFs have attracted $28.2 billion since their debut in January, according to Farside data.
Shifting Investor Strategies
Initially, questions arose about whether ETF inflows were tied to the basis trade—a net-neutral arbitrage strategy. However, analysts suggest that investors are increasingly adopting outright long positions, signaling a deeper conviction in bitcoin’s growth potential.
Crypto analyst Checkmate highlighted the role of ETFs in driving demand:
“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,” they wrote on X (formerly Twitter).
BlackRock’s iShares Bitcoin Trust (IBIT) has been a standout performer, consistently breaking records in trading volume. On Wednesday, it reached $5 billion in daily volume for the first time, according to Bloomberg analyst Eric Balchunas.
“IBIT just saw $5B in volume today for the first time ever. Only 3 ETFs and 8 stocks saw more action today. Its peers are seeing heightened volume too, but on a smaller scale,” Balchunas noted.
Renewed Interest in Ethereum
While bitcoin takes center stage, Ethereum’s ether (ETH) is also drawing attention. U.S.-listed spot ETFs for ETH recorded an additional $146.9 million in inflows on Nov. 14, bringing total net inflows to $241.7 million, Farside data shows.
A Defining Moment for Crypto
Bitcoin’s record-setting performance and the surging demand for crypto ETFs underscore a growing institutional appetite for digital assets. With regulatory clarity on the horizon and spot-driven momentum dominating the market, BTC and its peers appear poised for sustained growth in the months ahead.
