US Bitcoin ETFs experience 19 consecutive days of inflows while BTC faces challenges in reaching alltime high
Key Points
– US Spot Bitcoin ETFs see a 19-day inflow streak, increasing assets to $62.3 billion.
– BlackRock’s iShares Bitcoin Trust surpasses Grayscale, becoming the largest fund globally.
– Despite the surge in inflows, Bitcoin’s price struggles to break its all-time high.
Spot Bitcoin exchange-traded funds (ETFs) in the United States are witnessing a remarkable surge in inflows, with a continuous 19-day streak of increased demand. This streak has pushed the total inflows to a staggering $15.6 billion. Despite this surge, observers are left wondering why Bitcoin has not breached the $73,679 mark.
Record Inflows for Bitcoin
Since their inception, these ETFs have attracted a cumulative total of over $15.6 billion in inflows, resulting in total assets reaching an impressive $62.3 billion. Notably, global Bitcoin ETFs now hold approximately 1.3 million BTC, which accounts for 5.2% of the circulating supply.
The success of Bitcoin ETFs, led by industry giants such as BlackRock Inc. and Fidelity Investments, signifies a significant shift in the center of gravity for the crypto industry, moving it from Asia to the United States.
Last week, BlackRock’s iShares Bitcoin Trust, valued at $21.4 billion, surpassed Grayscale Investments LLC’s Bitcoin Trust, worth $20.1 billion, to become the largest fund for the token globally. Fidelity’s Wise Origin Bitcoin Fund, valued at $12.3 billion, holds the third position.
This surge in inflows aligns with recent regulatory changes, including the SEC’s approval of spot Bitcoin ETFs earlier this year. This regulatory shift has redirected the focus of the crypto industry more towards the United States and away from Asia.
SEC’s Influence and Market Acceptance
After permitting spot Bitcoin ETFs in January and spot Ethereum ETFs in May, the SEC is currently revising regulations for the crypto sector. Despite Chair Gary Gensler’s concerns regarding regulatory compliance, efforts are being made at the congressional level to clarify crypto legislation.
Ophelia Snyder, the president of crypto ETF provider 21 Shares AG, highlighted on Bloomberg’s Tiger Money podcast that the adoption of digital asset funds is still in its nascent stages, indicating substantial growth potential.
She further emphasized the significant room for growth in this sector, suggesting that “we are still in the early stages of development.”
Despite the remarkable 19-day streak of record inflows into US Bitcoin ETFs, the price of Bitcoin is yet to surpass $73,679. Speculators in the options market are anticipating a breakthrough this month, driven by ETF demand and expectations of Federal Reserve interest-rate adjustments.
Currently, Bitcoin is trading at $71,080, showing a slight increase in its price over the last 24 hours. However, the trading volume remains relatively low, around $26.2 billion, with a market capitalization of $1.4 trillion.