Bitcoin ETFs in the US surpass 15 billion yet the price of BTC lags behind whats the reason
Key Points
– US Spot Bitcoin ETFs have experienced a remarkable 19-day streak of inflows, boosting assets to $62.3 billion.
– BlackRock’s iShares Bitcoin Trust has surpassed Grayscale to become the world’s largest fund.
– Despite the surge in investments, Bitcoin’s price has yet to surpass its all-time high.
A fascinating trend is unfolding in the realm of Bitcoin. Spot Bitcoin exchange-traded funds (ETFs) in the United States are breaking records, with a staggering $15.6 billion flowing in over 19 consecutive days, bringing total assets to $62.3 billion.
However, despite this influx of investments, Bitcoin’s price remains below its highly anticipated peak of $73,679. This raises the question: what is causing this disconnect?
Delve deeper into the reasons behind this phenomenon to gain insight into the future of Bitcoin.
The Rise of Bitcoin ETFs
Since their introduction, these ETFs have captured investors’ attention, attracting an incredible $15.6 billion in inflows and accumulating total assets of $62.3 billion. Globally, Bitcoin ETFs now hold approximately 1.3 million BTC, representing 5.2% of the circulating supply.
This surge in popularity, led by industry giants like BlackRock Inc. and Fidelity Investments, signals a shift in the epicenter of crypto from Asia to the United States.
Last week, BlackRock’s iShares Bitcoin Trust, valued at $21.4 billion, surpassed Grayscale’s $20.1 billion Bitcoin Trust, becoming the largest fund for the token worldwide. Fidelity’s Wise Origin Bitcoin Fund, worth $12.3 billion, holds the third position.
The increase in ETF inflows aligns with regulatory changes, such as the SEC’s approval of spot Bitcoin ETFs earlier this year. This shift not only reshapes the crypto landscape but also redirects industry focus towards the United States, away from its traditional stronghold in Asia.
The SEC’s Vital Role
After approving spot Bitcoin ETFs in January and spot Ethereum ETFs in May, the SEC is currently reviewing regulations for the crypto industry. Despite Chair Gary Gensler’s regulatory compliance concerns, congressional efforts are underway to clarify crypto legislation.
Industry Insights
Ophelia Snyder, president of crypto ETF provider 21 Shares AG, shared insights on Bloomberg’s Tiger Money podcast, noting that digital-asset fund adoption is still in its early stages, indicating significant growth potential ahead. She likened the current phase to the “early innings,” suggesting that the world of crypto investment is just beginning.
When Will Bitcoin Reach New Heights?
Despite the impressive 19-day streak of inflows into US Bitcoin ETFs, Bitcoin’s price has yet to break the elusive $73,679 mark. However, options market speculators remain optimistic, anticipating a breakthrough this month. This optimism is fueled by the increasing demand for ETFs and expectations of Federal Reserve interest-rate cuts.
Currently, Bitcoin is trading at $71,080, showing a slight increase in price over the past 24 hours. Despite this surge, trading volume remains relatively low at around $26.2 billion, with a market cap of approximately $1.4 trillion.