US Bitcoin ETFs Experience 19Day Inflow Streak While BTC Faces Difficulties Reaching AllTime High
Key Points
– US Spot Bitcoin ETFs experience an unprecedented 19-day streak of inflows, boosting total assets to $62.3 billion.
– BlackRock’s iShares Bitcoin Trust overtakes Grayscale to become the world’s largest fund.
– Despite the surge in inflows, Bitcoin’s price struggles to surpass its all-time high.
– The success of Bitcoin ETFs signals a shift in the crypto market’s focus from Asia to the United States.
Spot Bitcoin exchange-traded funds (ETFs) in the United States have been on a roll, with 19 consecutive days of increased demand pushing total inflows to an impressive $15.6 billion. Despite this significant surge, the price of Bitcoin has yet to break the $73,679 barrier, leaving analysts puzzled.
The cumulative inflows into these ETFs since their launch have now reached $15.6 billion, resulting in a total asset value of $62.3 billion. Globally, Bitcoin ETFs hold around 1.3 million BTC, accounting for 5.2% of the total circulating supply.
The rise of Bitcoin ETFs, led by industry giants such as BlackRock Inc. and Fidelity Investments, signifies a significant shift in the crypto market’s center of gravity from Asia to the United States.
Last week, BlackRock’s iShares Bitcoin Trust surpassed Grayscale Investments LLC’s Bitcoin Trust to become the largest fund for the token worldwide, with a value of $21.4 billion. Fidelity’s Wise Origin Bitcoin Fund, with $12.3 billion in assets, secures the third position.
This surge in inflows aligns with recent regulatory changes, including the approval of spot Bitcoin ETFs by the SEC earlier this year. The shift in focus towards the United States marks a new era for the crypto industry.
The SEC, having approved spot Bitcoin ETFs in January and spot Ethereum ETFs in May, is currently reviewing regulations for the crypto sector. While Chair Gary Gensler has expressed concerns about regulatory compliance, efforts are being made in Congress to clarify cryptocurrency legislation.
Ophelia Snyder, president of crypto ETF provider 21 Shares AG, emphasized on Bloomberg’s Tiger Money podcast that the adoption of digital asset funds is still in its nascent stages, hinting at significant growth potential in the future.
Despite the record-breaking streak of inflows into US Bitcoin ETFs, the price of Bitcoin has yet to reach $73,679. Speculators in the options market are anticipating a breakthrough this month, driven by ETF demand and expectations of Federal Reserve interest rate cuts.
At present, Bitcoin is trading at $71,080, showing a slight increase in price over the last 24 hours. While the trading volume remains low at around $26.2 billion, the market cap stands at $1.4 trillion.