Bitcoin surges past $64,000 as $300m flows into Bitcoin ETFs

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As a seasoned crypto investor who has witnessed the evolution of Bitcoin and other digital assets over the past few years, I find myself increasingly optimistic about the latest developments in the market. The surge in Bitcoin’s price above $64,000 and the substantial inflows into Bitcoin ETFs in the US are clear signs of growing institutional adoption and mainstream recognition of cryptocurrencies as legitimate financial instruments.

I’ve experienced an exciting moment as an investor when Bitcoin‘s price broke through the $64,000 threshold on the 15th of July. This surge came after a significant injection of approximately $301 million into the eleven Bitcoin-focused exchange-traded funds (ETFs) based in the United States. For seven consecutive days prior to this, these funds had seen positive inflows.

On Monday, the Bitcoin exchange-traded funds (ETFs) from BlackRock’s IBIT, Ark Invest, and 21Shares’ ARKB saw significant inflows, drawing in approximately $117.2 million each. Notably, BlackRock’s IBIT was also the most actively traded Bitcoin ETF of the day, with a trading volume amounting to $1.24 billion.

Total net Bitcoin ETF inflow was approximately $300.9 million as of July 15, 2024. Here’s a breakdown of the flows for each specific Bitcoin ETF:

— Farside Investors (@FarsideUK) July 16, 2024

On Monday, Fidelity’s FBTC and Bitwise’s BITB recorded inflows of $36.15 million and $15.24 million respectively, increasing their overall assets to $9.75 billion and $2.14 billion. Other Bitcoin ETFs, such as those offered by VanEck, Invesco, Galaxy Digital, and Franklin Templeton, also experienced inflows during this period.

Contrastingly, Grayscale’s GBTC and ETFs from Valkyrie, WisdomTree, and Hashdex did not receive any new investments on that particular day. Since its launch, GBTC has recorded a net withdrawal of over $18.63 billion.

Approximately $2.26 billion was traded in value from U.S. Bitcoin spot funds on Monday. However, this trading volume is significantly less than what was observed in March, when daily volumes surpassed $8 billion on several occasions. Since their debut in January, these ETFs have attracted a total net inflow of approximately $16.11 billion.

As an analyst, I’ve observed a significant surge in Bitcoin’s value, with its price reaching an impressive $64,874 at the point of this writing. Notably, Larry Fink, the co-founder and CEO of BlackRock, shared his perspective on CNBC, conceding that he had underestimated Bitcoin in the past. He now recognizes it as a bona fide financial asset.

As an analyst, I’m observing that there’s growing excitement in the market regarding the potential approval of spot Ethereum Exchange-Traded Funds (ETFs) by the Securities and Exchange Commission (SEC). Some industry insiders are even predicting a decision as early as this week. If not this week, then we can expect an announcement before July comes to a close.

Currently, there’s growing excitement in the market as investors await the SEC’s upcoming decision on approving spot Ethereum exchange-traded funds (ETFs). Many believe this approval could be announced prior to the month’s end, in July.

As a crypto investor, I closely follow the market analysis provided by experts like Matteo Greco of Fineqia. According to him and other analysts, there is an anticipated surge in investments towards Ethereum Spot ETFs. This estimation takes into account the disparity in market caps between Bitcoin and Ethereum. To gauge the true interest of investors in digital assets beyond Bitcoin, it’s essential to analyze net inflows relative to Bitcoin.

“Despite varying market situations, ETH Spot ETFs could experience withdrawals akin to those of the Grayscale Ethereum Trust, as suggested by Greco.”

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2024-07-16 11:38