Bitcoin has surged to new all-time highs, surpassing $72,000, driven by record-breaking inflows into crypto exchange-traded products (ETPs). This surge follows a week where crypto investment products saw a record-breaking $2.7 billion in inflows, according to CoinShares analyst James Butterfill.
Strong Inflows into Crypto ETPs
Year-to-date, crypto ETPs have attracted $10.3 billion in inflows, nearly matching the total for all of 2021, which was $10.6 billion. Bitcoin accounted for a significant portion of this, with $2.6 billion in inflows, representing 14% of the total crypto-related assets under management (AUM) worldwide.
Impact of U.S. Spot Bitcoin ETFs
The growth in inflows can be attributed to the increasing investment in U.S. spot Bitcoin exchange-traded funds (ETFs), which have seen over $110 billion in total volume traded since their launch on Jan. 11. Analysts note that out of approximately 3,500 U.S. ETPs, only 445 have over $2 billion in assets, highlighting the significant growth of Bitcoin ETFs.
Market Predictions and Regulatory Developments
Analysts predict further upside for Bitcoin, with some expecting the price to push toward $80,000 in the coming months. This rally comes alongside significant regulatory developments, including the London Stock Exchange accepting Bitcoin and Ether exchange-traded notes, and increased acceptance from the UK Financial Conduct Authority for new crypto-related financial products.
Mikkel Mørch, founder of digital asset investment fund ARK36, sees these regulatory shifts as a sign of broader acceptance and institutionalization of cryptocurrencies. He believes that these factors, along with the upcoming halving event and the continued growth of Bitcoin ETF inflows, will sustain the rally and lead to mainstream adoption of cryptocurrencies.
Bitcoin has surged to new all-time highs, surpassing $72,000, driven by record-breaking inflows into crypto exchange-traded products (ETPs). This surge follows a week where crypto investment products saw a record-breaking $2.7 billion in inflows, according to CoinShares analyst James Butterfill.
Strong Inflows into Crypto ETPs
Year-to-date, crypto ETPs have attracted $10.3 billion in inflows, nearly matching the total for all of 2021, which was $10.6 billion. Bitcoin accounted for a significant portion of this, with $2.6 billion in inflows, representing 14% of the total crypto-related assets under management (AUM) worldwide.
Impact of U.S. Spot Bitcoin ETFs
The growth in inflows can be attributed to the increasing investment in U.S. spot Bitcoin exchange-traded funds (ETFs), which have seen over $110 billion in total volume traded since their launch on Jan. 11. Analysts note that out of approximately 3,500 U.S. ETPs, only 445 have over $2 billion in assets, highlighting the significant growth of Bitcoin ETFs.
Market Predictions and Regulatory Developments
Analysts predict further upside for Bitcoin, with some expecting the price to push toward $80,000 in the coming months. This rally comes alongside significant regulatory developments, including the London Stock Exchange accepting Bitcoin and Ether exchange-traded notes, and increased acceptance from the UK Financial Conduct Authority for new crypto-related financial products.
Mikkel Mørch, founder of digital asset investment fund ARK36, sees these regulatory shifts as a sign of broader acceptance and institutionalization of cryptocurrencies. He believes that these factors, along with the upcoming halving event and the continued growth of Bitcoin ETF inflows, will sustain the rally and lead to mainstream adoption of cryptocurrencies.
We now have five US spot #bitcoin ETFs over $2 billion in assets with $BITB joining the club
— James Seyffart (@JSeyff) March 11, 2024
Out of ~3,500 US ETPs there are only 445 with over $2 billion in assets
Going a step further -- only 157 have more than $10 Billion. $GBTC & $IBIT are there. $FBTC is getting close https://t.co/Yc7N3OBquH
