Bitcoin Soars After Crypto ETPs Set Inflow Record
12 Mar, 2024 ● Coin news
Bitcoin has surged to achieve fresh record highs above $72,000, buoyed by a remarkable week of inflows into cryptocurrency exchange-traded products (ETPs).
As per a post by CoinShares analyst James Butterfill on March 11, crypto investment products witnessed a historic influx of $2.7 billion as of March 8.
Year-to-date, crypto ETPs have attracted inflows totaling $10.3 billion, nearly matching the entire $10.6 billion inflow seen throughout 2021.
Bitcoin led the charge, attracting $2.6 billion in inflows year-to-date, now representing 14% of the total global crypto-related assets under management (AUM).
On March 11, Bitcoin soared to a new peak of $72,900, and though it has since stabilized around $72,000, it remains up 6.9% over the past week and 29% over the last month, according to TradingView data.
The surge in ETP inflows is largely attributed to increased investment in recently approved spot Bitcoin exchange-traded funds (ETFs) in the United States, which have now amassed over $110 billion in total traded volume since their launch on Jan. 11.
Bloomberg ETF analyst James Seyffart highlighted that five U.S. spot Bitcoin ETFs now manage over $2 billion in assets under management (AUM), with Bitwise's BITB fund being the newest entrant to this group.
IG market analyst Tony Sycamore predicted in an analyst note that Bitcoin could push towards $80,000 in the coming months, with the asset well-supported on potential dips.
Mikkel Mørch, founder of digital asset investment fund ARK36, noted that Bitcoin's new peak coincided with the London Stock Exchange accepting Bitcoin and Ether exchange-traded notes, alongside increased openness from the United Kingdom Financial Conduct Authority towards new crypto-related financial products.
Mørch sees this regulatory shift, alongside international regulatory acceptance of crypto assets, the upcoming halving event, and the continuous growth of Bitcoin ETF inflows, as indicative of a "new era of growth and mainstream adoption for cryptocurrencies."
He believes these factors will sustain the rally and foster a more robust and diverse investment landscape for digital assets.
Sources:
https://cointelegraph.com/news/bitcoin-price-surges-crypto-etfs-notch-record-weekly-inflows
https://blog.coinshares.com/volume-173-digital-asset-fund-flows-weekly-report-d3b5fd18d417
https://www.tradingview.com/symbols/BTCUSD/?exchange=COINBASE
