Bitcoin surges to $71k as analysts cite increased spot ETF inflows

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As a seasoned crypto investor with a background in market analysis, I’m excited about the recent surge in Bitcoin’s price to $71,000 and the renewed interest in Bitcoin spot Exchange-Traded Funds (ETFs). Matteo Greco, a research analyst at Fineqia International, has highlighted the significant investor inflows into these ETFs as a key driver of this price increase.

Analyst expects renewed market confidence as Bitcoin surges to $71,000

The value of Bitcoin reached an all-time high of $71,000 on Tuesday due to heightened demand from spot markets and the acquisition of Bitcoin ETFs. This price spike has sparked debates among cryptocurrency enthusiasts about whether it marks the beginning of a bull market or its culmination.

As a crypto investor, I’d like to share that the largest cryptocurrency is presently being traded at a price of $70,950, with an impressive 24-hour trading volume of $52.4 billion. Its market capitalization now hovers at an impressive figure of $1.39 trillion.

Bitcoin surges to $71k as analysts cite increased spot ETF inflows

As a research analyst at Fineqia International, I’ve noticed a significant uptick in investor attention and funds flowing into Bitcoin spot Exchange-Traded Funds (ETFs). This trend indicates a growing confidence in the Bitcoin market, which has contributed to its recent price surge.

Last week, Bitcoin ended its trading at roughly $66,300, marking a weekly growth of nearly 8%, or $4,800, over its previous closing price of approximately $61,500.

“During the past week, volatility levels were subdued day-to-day. The largest price surge occurred on Wednesday. Meanwhile, the remaining days of the week demonstrated steady pricing trends,” Greco commented in a release for crypto.news.

Renewed interest in Bitcoin ETFs

As an analyst, I’ve observed a resurgence of interest in the market following five weeks of low demand that led to approximately $1 billion in cumulative net outflows. This recent uptick in demand is evident with Farside Investors reporting inflows amounting to around $950 million last week – a figure not witnessed since March.

Greco noted that last week, GBTC wasn’t the sole US Bitcoin ETF attracting investor funds. This observation comes after a potential shift in GBTC’s trend, as the fund recorded its first weekly net inflows in almost 19 weeks from May 13 to May 17, amounting to $31.6 million.

Last week, GBTC’s fluctuations were minor in contrast to the significant $17.6 billion worth of outflows that occurred since early this year following the SEC’s approval of spot Bitcoin ETFs in the United States.

Following the surge in investments into Bitcoin ETFs and the cryptocurrency’s price rebound, an analyst at Fineqia International anticipates that focus will turn towards Ethereum (ETH) ETFs.

Potential outcomes for spot Ethereum ETFs

The Securities and Exchange Commission (SEC) will render its judgement on VanEck’s and ARK 21Shares’ applications on the 23rd and 24th of May, respectively.

“Experts at Bloomberg and Greco anticipate that the SEC will likely reject these particular products for listing, in contrast to their previous decision to approve Bitcoin ETFs early this year.”

On May 21st, Ethereum experienced a significant 18% increase in value. This surge was likely due to Eric Balchunas’ announcement, who is a senior analyst at Bloomberg. He boosted the likelihood of Ethereum exchange-traded funds being approved from 25% to 75%.

As a crypto investor, I’ve been closely following the developments regarding the potential approval of an Bitcoin ETF in the US. Recently, Balchunas made an intriguing observation: the SEC’s sudden urgency to make decisions on ETF applications could be influenced by political pressure. Previously, the agency had taken a hands-off approach when dealing with ETF hopefuls.

“The uncertainty surrounding the liquidity of Ethereum’s current spot and futures markets, coupled with its past designation as a security by the SEC, fuels doubts about quick regulatory acceptance. In the event of rejection, applicants would be required to resubmit their filings, resulting in an optimistic timeline for approval no earlier than Q4 2024 or Q1 2025.”

Matteo Greco, research analyst at Fineqia International

As a crypto investor, I’ve come across two different perspectives regarding Securities and Exchange Commission (SEC) approvals for filings from Fineqia’s analyst. While some believe that S-1 registrations, which are essential for companies before public securities offerings, may face delays in approval, others argue that the SEC might expedite the process for 19b-4 forms. These latter forms allow proposing rule changes to the SEC instead.

Before trading Ethereum ETFs on American stock markets becomes an option, both involved firms need to receive approval from the securities regulatory body (SEC). Greco suggested that this process could provide the SEC with the chance to delve deeply into the Ethereum market and potentially determine whether Ethereum should be classified as a security.

The analyst found that this decision may benefit the issuers, considering the significant interest of traditional finance investors in Bitcoin. Consequently, there could be a decrease in trading around Ethereum Spot ETFs if they are introduced the following week.

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2024-05-21 14:13