US Bitcoin ETFs see 19 consecutive days of inflows while BTC faces challenges in reaching alltime high
Key Points:
– US Spot Bitcoin ETFs see 19-day inflow streak, increasing assets to $62.3 billion.
– BlackRock’s iShares Bitcoin Trust becomes world’s largest fund, surpassing Grayscale.
– Despite record inflows, Bitcoin’s price struggles to surpass its all-time high.
In the United States, Spot Bitcoin exchange-traded funds (ETFs) are experiencing a surge in inflows, marking an impressive 19 consecutive days of increased demand. This streak has boosted total inflows to over $15.6 billion. Despite this significant surge, analysts are puzzled as to why Bitcoin has not surpassed the $73,679 mark.
Bitcoin ETFs have been breaking records since their launch, attracting over $15.6 billion in cumulative inflows and bringing total assets to a staggering $62.3 billion. Global Bitcoin ETFs now hold approximately 1.3 million BTC, which represents 5.2% of the circulating supply.
The success of Bitcoin ETFs, led by industry giants like BlackRock Inc. and Fidelity Investments, signifies a major shift in the crypto market’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 $20.1 billion Bitcoin Trust, becoming the largest fund for the token globally. Fidelity’s Wise Origin Bitcoin Fund, with $12.3 billion in assets, holds the third position.
This surge in inflows aligns with regulatory changes, such as the SEC’s approval of spot Bitcoin ETFs earlier this year, which has shifted the crypto landscape’s focus towards the United States and away from Asia.
The SEC’s role in approving spot Bitcoin ETFs in January and spot Ethereum ETFs in May, along with ongoing regulatory reviews, reflects a growing market adoption. Despite Chair Gary Gensler’s concerns about regulatory compliance, efforts are being made at the congressional level to clarify crypto legislation.
Ophelia Snyder, president of crypto ETF provider 21 Shares AG, emphasized on Bloomberg’s Tiger Money podcast that digital-asset fund adoption is still in its early stages, suggesting significant growth potential in this sector.
Despite the record-breaking streak of inflows into US Bitcoin ETFs, Bitcoin’s price has yet to surpass $73,679. Speculators in the options market anticipate a breakthrough 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. Despite this uptick, the trading volume remains low at around $26.2 billion, with a market cap of $1.4 trillion.