Source: Jin10 Data
Analysts say that the macro economy is continuing to develop in a direction favorable to cryptocurrencies.
The US Bitcoin ETF has seen a continuous net inflow for 18 days, an unprecedented phenomenon that has led to a surge in demand and pushed the world’s largest digital currency closer to its historical high.
According to data compiled by Bloomberg, nearly a dozen physical Bitcoin ETFs launched since January 11 have attracted a total net purchase amount of US$15.6 billion as of this Thursday, and the total assets under management have reached US$62.3 billion.
Bitcoin funds from companies such as Blackrock and Fidelity occupy a place in some of the most successful first appearances in the history of the ETF sector. They shocked Wall Street and shifted the center of gravity of cryptocurrency from Asia to the United States.
Many speculators in the options market expect Bitcoin to surpass its historical peak of $73,798 set in March this month, thanks to the push of demand for physical Bitcoin ETFs and the expectation of Fed rate cuts.
Sean Farrell, head of digital asset strategy at Fundstrat Global Advisors LLC, wrote in a report: "A large influx of funds has flowed into physical Bitcoin ETFs. The macroeconomy continues to develop in favor of cryptocurrencies, with the growth rate of the economy slowing down but not falling into recession, and signs of anti-inflation are continuing."
The US Bitcoin ETF has the longest continuous daily capital inflow record.
Last week, BlackRock’s iShares Bitcoin Trust, valued at $21.4 billion, became the world’s largest Bitcoin fund, exceeding Grayscale Investment Company’s $20.1 billion Bitcoin Trust. Fidelity's Wise Origin Bitcoin Fund, valued at $12.3 billion, ranks third.
After the court ruling in 2023 was overturned, the US Securities and Exchange Commission (SEC) reluctantly allowed physical Bitcoin ETFs to be listed in January. Surprisingly, the agency also began to lean towards approving the second largest cryptocurrency, Ethereum, in May.
Under SEC Chairman Gary Gensler’s leadership, the agency has generally taken a critical stance on the digital asset industry for suspected violations of regulatory requirements. Recently, Congress has accelerated efforts to bring legislative clarity to cryptocurrencies.
Ophelia Snyder, President of cryptocurrency ETF provider 21 Shares AG, said that the adoption of digital asset funds is still in its early stages for institutions and intermediaries. She said, "There is still a long way to go in the market, and we are still in the early stages."
Since the beginning of last year, Bitcoin has risen more than four times in price. This surge has faded people’s memories of the painful bear market in 2022 when many fraudulent activities were exposed in the market and led to once-esteemed entrepreneurs such as Sam Bankman-Fried being jailed.
Editor / jayden