US Bitcoin ETFs experience 19day streak of inflows while Bitcoin faces challenges in reaching alltime high
Key Points:
– US Spot Bitcoin ETFs are experiencing a 19-day streak of inflows, boosting assets to $62.3 billion.
– BlackRock’s iShares Bitcoin Trust has surpassed Grayscale, becoming the largest fund globally.
– Despite record inflows, Bitcoin’s price has not surpassed its all-time high.
– Analysts are puzzled by this lack of price movement.
In the United States, spot Bitcoin exchange-traded funds (ETFs) are seeing a surge in inflows, marking their 19th consecutive day of increased demand. This streak has pushed total inflows to over $15.6 billion. Despite this significant increase, Bitcoin’s price has remained stagnant, failing to break the $73,679 mark.
Since their inception, these ETFs have attracted a total of $15.6 billion in inflows, bringing the total assets to an impressive $62.3 billion. 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 like BlackRock Inc. and Fidelity Investments, marks a shift in the crypto world’s focus from Asia to the United States. Last week, BlackRock’s iShares Bitcoin Trust, with assets totaling $21.4 billion, surpassed Grayscale Investments LLC’s Bitcoin Trust to become the largest fund globally. Fidelity’s Wise Origin Bitcoin Fund, with $12.3 billion in assets, 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. The regulatory landscape is shifting, with a focus on the United States rather than Asia.
The SEC, after allowing spot Bitcoin ETFs in January and spot Ethereum ETFs in May, is now reviewing regulations for the crypto industry. Despite concerns about regulatory compliance, efforts are being made to clarify crypto legislation at the congressional level.
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 early stages, indicating significant growth potential in the sector.
Despite the impressive streak of inflows into US Bitcoin ETFs, Bitcoin’s price has not yet surpassed $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.
Currently, Bitcoin is trading at $71,080, showing a slight increase in price over the last 24 hours. The trading volume remains low at around $26.2 billion, with a market cap of $1.4 trillion.