- US spot Bitcoin ETFs are witnessing a robust trend of net inflows for 18 successive days, pushing Bitcoin closer to its previous high.
- New data from Bloomberg reveals that these ETFs, managed by leading global financial firms, have accumulated $15.6 billion in net subscriptions since debuting on January 11, lifting total managed assets to $62.3 billion.
- Record demand and strategic shifts in investment centers signify notable developments in the cryptocurrency sector.
Spot Bitcoin ETFs are hitting historic inflow records, spurring strong upward momentum in the cryptocurrency market and shifting investment trends towards the US.
Record-Breaking Demand For Bitcoin ETFs
The surge in popularity of Bitcoin ETFs from BlackRock and Fidelity Investments is marking unprecedented success in the ETF sector, as reported by Bloomberg.
These ETFs are redefining the focal point of cryptocurrency investments, moving it significantly from Asia to the United States.
Sean Farrell, Head of Digital Asset Strategy at Fundstrat, emphasized the substantial inflows into these ETFs, noting that the current macroeconomic conditions are beneficial for the cryptocurrency market. Economic indicators are showing growth without entering recessionary territory, coupled with continuing signs of disinflation.
In a recent milestone, BlackRock’s iShares Bitcoin Trust reached $21.4 billion in assets, surpassing Grayscale’s Bitcoin trust (GBTC), which holds $20.1 billion. Fidelity’s Wise Origin Bitcoin Fund follows with $12.3 billion in assets.
The US Securities and Exchange Commission (SEC) had initially been resistant to allowing spot Bitcoin ETFs, but judicial actions in 2023 forced a policy change. Despite ongoing scrutiny of digital asset compliance, legislative efforts in Congress are progressing towards clearer regulatory guidelines for cryptocurrencies.
BTC Options Traders Target $100,000
Amidst the inflows into Bitcoin ETFs, options traders are demonstrating a bullish outlook for Bitcoin’s price. Open interest in the BTC options market shows a focus on call options with strike prices of $75,000, $100,000, and $80,000.
Luuk Strijers, CEO of Deribit, the largest crypto options exchange, noted the strong bullish sentiment among options traders. Factors such as robust ETF flows, anticipated US Federal Reserve interest rate reductions, European Central Bank’s rate cuts, and the approval of an Ethereum ETF are bolstering this confidence.
Bitcoin has experienced slight pullbacks from its all-time high of $73,700 achieved in March; however, the renewed ETF inflows and prospect of interest rate cuts have fueled optimism among traders. Call options set to expire in late June and December suggest positive short- and long-term market sentiment.
As of the latest update, Bitcoin has managed to consolidate above the $70,000 mark, with a 5% gain over the past week, placing its current price at $71,320.
Conclusion
The continued inflows into US spot Bitcoin ETFs underscore a growing confidence in the cryptocurrency market, driven by favorable macroeconomic conditions and supportive regulatory shifts. With Bitcoin’s price showing stability and options traders eyeing new all-time highs, the outlook remains optimistic for future growth and investor interest.
