US Bitcoin ETFs surpass 15 billion in value yet BTC price lags behind whats the reason

Key Points
– US Spot Bitcoin ETFs are experiencing a 19-day streak of inflows, pushing assets to $62.3 billion.
– BlackRock’s iShares Bitcoin Trust has overtaken Grayscale to become the world’s largest fund.
– Despite the influx of investments, Bitcoin’s price struggles to reach its all-time high.
A fascinating trend is emerging in the Bitcoin world. Spot Bitcoin exchange-traded funds (ETFs) in the US are breaking records, attracting an impressive $15.6 billion in just 19 consecutive days of increased demand.
However, the puzzling part is that despite this investment frenzy, Bitcoin’s price remains below its highly anticipated peak of $73,679. What could be causing this discrepancy?
Let’s delve deeper into the reasons behind this mismatch and its implications for the future of Bitcoin.
The Bitcoin ETF Craze
Since their introduction, these ETFs have caught the eye of investors, raking in a remarkable $15.6 billion in total inflows and accumulating total assets of $62.3 billion. Globally, Bitcoin ETFs now hold around 1.3 million BTC, which makes up a significant 5.2% of the circulating supply.
This surge in Bitcoin ETF popularity, driven by major players like BlackRock Inc. and Fidelity Investments, signals a notable shift in the crypto world’s center from Asia to the US.
Last week, BlackRock’s iShares Bitcoin Trust, with $21.4 billion in assets, surpassed Grayscale Investments LLC’s $20.1 billion Bitcoin Trust to become the largest fund for the token worldwide. Fidelity’s Wise Origin Bitcoin Fund, with $12.3 billion, holds the third spot.
The increase in ETF inflows aligns with regulatory changes, including the SEC’s approval of spot Bitcoin ETFs earlier this year. This regulatory shift has not only reshaped the crypto landscape but has also redirected the industry’s focus towards the US from its traditional base in Asia.
Understanding the SEC’s Key Role
The SEC, after permitting spot Bitcoin ETFs in January and spot Ethereum ETFs in May, is currently reassessing regulations for the crypto sector. Despite Chair Gary Gensler’s concerns about regulatory adherence, there are ongoing congressional efforts to clarify crypto legislation.
Industry Opinions
Ophelia Snyder, president of crypto ETF provider 21 Shares AG, shared her views on Bloomberg’s Tiger Money podcast, indicating that the adoption of digital-asset funds is still in its early stages, hinting at significant growth potential ahead. She likened the current phase to the “early innings,” suggesting that the realm of crypto investment is just beginning.
When Will Bitcoin Make a Breakthrough?
Despite the impressive 19-day streak of record inflows into US Bitcoin ETFs, Bitcoin’s price has yet to breach the elusive $73,679 threshold. Nonetheless, speculators in the options market remain optimistic, anticipating a breakthrough this month. This optimism is fueled by the rising demand for ETFs and expectations of Federal Reserve interest-rate cuts.
Currently, Bitcoin is trading at $71,080, showing a slight increase in its price over the past 24 hours. Despite this uptick, trading volume remains relatively low at around $26.2 billion, with a market cap hovering around $1.4 trillion.