Record-Breaking Inflows for US Spot Bitcoin ETFs
US spot Bitcoin ETFs have experienced a remarkable streak of net inflows for 18 consecutive days, fueling the upward momentum of the leading cryptocurrency as it approaches its all-time high levels set in March.
According to Bloomberg data, these ETFs, managed by some of the world’s largest financial institutions, have attracted net subscriptions of $15.6 billion since their launch on January 11, bringing total assets under management to a substantial $62.3 billion.
The success of Bitcoin ETFs introduced by BlackRock and Fidelity Investments has made them some of the most successful launches in the ETF sector’s history. These products have significantly shifted the center of gravity for cryptocurrency investments from Asia to the United States.
Sean Farrell, Head of Digital Asset Strategy at Fundstrat, highlighted the significant inflows into spot Bitcoin ETFs and noted that the macroeconomic environment favors the cryptocurrency market. Economic growth is advancing at a “non-recessionary pace,” and signs of disinflation persist.
Recently, BlackRock’s iShares Bitcoin Trust became the world’s largest Bitcoin fund, surpassing Grayscale’s Bitcoin trust. The US Securities and Exchange Commission (SEC) reluctantly permitted spot Bitcoin ETFs in January due to a court reversal in its lawsuit against Grayscale in 2023.
In addition to the Bitcoin ETF inflows, options traders are increasingly optimistic about Bitcoin’s future. Open interest is concentrated on call options with strike prices of $75,000, $100,000, and $80,000. Traders anticipate new all-time highs, driven by strong Bitcoin ETF flows and other factors.
While Bitcoin experienced a minor retreat from its record high set in March, renewed inflows into Bitcoin ETFs and expectations of interest rate cuts have reignited optimism among traders. The cryptocurrency has successfully consolidated above the $70,000 milestone, with gains over the past seven days favoring its price.
Overall, the increasing demand for Bitcoin ETFs and the positive sentiment in the options market indicate a bullish outlook for the leading cryptocurrency, with traders eyeing new highs and continued growth in the market.