Altcoins Surge as Record ETF Inflows Coincide with Lark Davis’s Bitcoin and Ethereum Price Forecast
The altcoin market is ablaze! Fueled by a surge in value and a decline in Bitcoin dominance, altcoins are in the midst of a scorching rally. In just two weeks, the total market cap of altcoins has skyrocketed by 15%, reaching an astonishing $1.156 trillion. But what is the driving force behind this astonishing surge? Let’s delve into it.
Bitcoin ETFs Fuel Market Growth
In a momentous milestone for the cryptocurrency market, Bitcoin ETFs in the United States have witnessed an influx of over $2 billion in the past two weeks. Last week alone, a record-breaking $1 billion poured in, with $305 million on May 21st alone. Bitcoin ETFs, which track the price of Bitcoin and are traded on conventional exchanges like the NYSE, provide investors with exposure to Bitcoin without the need to directly hold the cryptocurrency.
According to data from Farside, U.S. spot Bitcoin ETFs experienced net inflows of approximately $252 million on May 24th, marking the 10th consecutive trading day of net inflows. Specifically, BlackRock’s IBIT saw an inflow of $182 million, Fidelity’s FBTC received $44 million, Bitwise’s BITB attracted $6.4 million, and the ARK 21Shares Bitcoin ETF witnessed an inflow of $4 million.
Insights from Analyst Lark Davis
Bitcoin is predicted to reach $150,000.
Ethereum is predicted to hit $15,000.
Here’s why:…
— Lark Davis (@TheCryptoLark)
May 27, 2024
Crypto influencer Lark Davis has made bold predictions regarding substantial price increases for Bitcoin and Ethereum. Davis forecasts Bitcoin to reach $150,000 and Ethereum to surge to $15,000. He attributes this trend to the growing impact of Bitcoin ETFs, which are already attracting hundreds of millions of dollars in daily inflows. Davis anticipates a similar trend for Ethereum ETFs, which are set to commence trading soon.
According to a report by Kaiko analysts, Grayscale could be a game changer for ETH ETFs, just like it was for BTC ETFs. If Grayscale’s upcoming spot Ether (ETH) ETF follows the same trend as the Grayscale Bitcoin Trust (GBTC) did when it converted to an ETF, it could experience daily outflows of around $110 million. After the conversion on January 11th, GBTC witnessed a 23% outflow of its assets, totaling $6.5 billion in the first month.
Davis expects billions of dollars to be invested in these ETFs daily by regular investors, institutional buyers, wealth managers, pension funds, and even countries, as the bull market reaches its peak. The influx of capital is projected to drive up prices. He argues that ETF-driven investments will push Bitcoin and Ethereum prices higher, as the market sentiment is not bullish enough considering their growth potential.
Interestingly, first-quarter reports revealed that over 20% of exposure to US spot Bitcoin ETFs was held by large investors and institutions with assets exceeding $100 million. This includes major hedge funds, banks, and even the state of Wisconsin’s pension fund, underscoring the growing institutional interest in Bitcoin ETFs and indicating that ETH ETFs may follow a similar path.
While Ethereum ETFs have yet to launch, there is speculation that they could reverse the inflows seen in BTC ETFs, making altcoin history. Do you agree?
Tags:
Altcoins
Bitcoin
Ethereum