BTC
by BSCN
February 12, 2024
Notable contributors include BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund, holding $4 billion and $3.4 billion in assets, respectively.
The price of Bitcoin (BTC) has surged by 16.5%, reaching $50,011over the past seven days, marking its most substantial weekly gain since October 2023, according to market data. This impressive recovery is closely tied to accelerating inflows into U.S.-based spot Bitcoin ETFs, surpassing a remarkable $3 billion U.S.
Over $1.1 billion in net fresh funds were injected into spot Bitcoin ETFs last week, underpinning the price action. CoinShares, an asset management firm, reported this surge, highlighting a significant shift as outflows from established funds like Grayscale Bitcoin Trust (GBTC) and ProShares' futures-based ETF slow down.
As of February 9, BlackRock’s iShares Bitcoin Trust takes the lead with $4 billion in assets, closely followed by Fidelity’s Wise Origin Bitcoin Fund with total inflows of $3.4 billion.
Other notable players in the space include ARK 21, reaching the $1.02 billion mark, BITB Bitwise amassing $0.857 billion of AUM, and BTCO Invesco holding a total AUM of $0.343 billion.
The surge is particularly noteworthy as the market anticipates a halving event scheduled for April of this year.
On February 9, spot ETFs experienced net inflows of $541.5 million in a single day, coinciding with Bitcoin's price crossing the $48,000 mark for the first time since ETFs received approval. Simultaneously, global equities demonstrated strength, with the S&P 500 index achieving a historic high, closing above the 5,000 mark on February 9.
In addition, Grayscale's GBTC has seen its outflows decline to a record low of $72.7 million since January 11, suggesting that the Bitcoin ETF market might be stabilizing.
The US Securities and Exchange Commission's (SEC) approval of 11 spot Bitcoin ETFs on January 10 has played a pivotal role in shaping this new investment landscape.
While the decline in GBTC outflows signals optimism for the Bitcoin ETF market and prices, potential headwinds loom. The possibility of Genesis, a crypto lender under bankruptcy protection, liquidating its substantial $1.6 billion GBTC holdings, could exert selling pressure, impacting ETF net inflows and prices in the coming months.
Investing analyst Noelle Acheson explains the current Bitcoin landscape, pointing to increased accumulation as a reason for the currency's momentum. According to Noelle, China's stock market challenges and the anticipated currency depreciation in developed countries are the primary drivers of this accumulation.
Disclaimer
Disclaimer: The views expressed in this article do not necessarily represent the views of BSCNews. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. BSCNews assumes no responsibility for any investment decisions made based on the information provided in this article
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