US exchange-traded funds (ETFs) investing directly in Bitcoin have attracted net inflows for an unprecedented 18th consecutive day, driving the largest digital asset toward a record high. As of Thursday, net subscriptions for nearly a dozen Bitcoin ETF products totaled $15.6 billion since their January 11 launch, pushing total assets to $62.3 billion, shows the data.
Bitcoin ETFs fueling rage in market
Bitcoin funds from major firms such as BlackRock Inc. and Fidelity Investments have made some of the most successful debuts in the ETF sector’s history, significantly shifting crypto’s center of gravity from Asia to the US. Speculators in the options market anticipate Bitcoin will surpass its March peak of $73,798 this month, driven by strong ETF demand and expectations of forthcoming Federal Reserve interest-rate cuts.
Last week, BlackRock’s $21.4 billion iShares Bitcoin Trust overtook Grayscale Investments LLC’s $20.1 billion Bitcoin trust to become the world’s largest Bitcoin fund. Fidelity’s $12.3 billion Wise Origin Bitcoin Fund holds the third spot.
The US Securities and Exchange Commission (SEC) grudgingly approved spot-Bitcoin ETFs in January following a 2023 court reversal. In May, the SEC also pivoted unexpectedly toward approving ETFs for Ether, the second-largest cryptocurrency.
Despite this, the SEC, led by Chair Gary Gensler, remains critical of the digital-asset industry’s alleged regulatory noncompliance. Meanwhile, Congressional efforts to provide clearer legislative guidelines for cryptocurrencies have gained momentum.
BTC to hit new high?
Ophelia Snyder, president of crypto ETF provider 21 Shares AG, believes institutional and intermediary adoption of digital-asset funds is still in its early stages. “The market has quite a way to run and we’re still in quite early innings,” she said on Bloomberg’s Tiger Money podcast.
Bitcoin has more than quadrupled since the start of last year, alleviating memories of the severe 2022 bear market that exposed fraudulent activities and led to the imprisonment of prominent entrepreneurs like Sam Bankman-Fried.
Bitcoin price is up by 12% in the last 30 days. BTC is trading at an average price of $71,186, at the press time. Its 24 hour trading volume dropped by 5% to stand at $26 billion with a market cap of $1.4 billion.
The second largest digital asset, Ether recorded a gain of 28% over the last 30 days. ETH is trading at an average price of $3,813, at the press time. Ether is nearing into a market cap of $500 billion.
