US Bitcoin ETFs experience a 19day streak of inflows while BTC faces challenges in reaching alltime high
Key Points
– US Spot Bitcoin ETFs have seen an unprecedented 19-day streak of inflows, boosting total assets to $62.3 billion.
– BlackRock’s iShares Bitcoin Trust has surpassed Grayscale to become the world’s largest fund for Bitcoin.
– Despite the surge in inflows, Bitcoin’s price has not managed to break its all-time high of $73,679.
Spot Bitcoin exchange-traded funds (ETFs) in the US have been experiencing a remarkable increase in inflows, marking a 19-day streak of rising demand. This surge has pushed total inflows to over $15.6 billion. However, analysts are scratching their heads as to why Bitcoin’s price has not managed to surpass the $73,679 mark.
Record-breaking Inflows
Since their inception, these ETFs have attracted a total of over $15.6 billion in inflows, bringing the total assets to an impressive $62.3 billion. Globally, Bitcoin ETFs now hold around 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, indicates a significant shift in the crypto landscape from Asia to the US.
Recent Developments
Last week, BlackRock’s iShares Bitcoin Trust, with assets totaling $21.4 billion, overtook Grayscale Investments LLC’s $20.1 billion Bitcoin Trust to become the largest fund for Bitcoin globally. Fidelity’s Wise Origin Bitcoin Fund, with assets of $12.3 billion, holds the third position.
This surge in inflows aligns with regulatory changes, including the SEC’s approval of spot Bitcoin ETFs earlier in the year. This shift has seen the focus of the crypto industry move towards the US away from Asia.
SEC’s Impact and Market Trends
Following the approval of spot Bitcoin ETFs in January and spot Ethereum ETFs in May, the SEC is currently reviewing regulations for the crypto sector. Despite Chair Gary Gensler’s concerns about regulatory compliance, efforts are being made in Congress to clarify crypto 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 early stages, indicating significant growth potential. She noted that there is still a vast room for growth in this sector, suggesting that “we’re still in quite early innings.”
Challenges for Bitcoin
Despite the unprecedented 19-day streak of inflows into US Bitcoin ETFs, the price of Bitcoin has yet to break the $73,679 mark. Speculators in the options market are expecting a breakthrough this month, fueled by ETF demand and expectations of Federal Reserve interest-rate cuts.
At present, Bitcoin is trading at $71,080, showing a slight increase in its price over the last 24 hours. Despite this uptick, the trading volume remains relatively low at around $26.2 billion, with a market cap of $1.4 trillion.