Bitcoin Hits Record High Above $72,000 Amid Unprecedented Crypto ETP Inflows
Summary:
Bitcoin (BTC) reached a new all-time high above $72,000, driven by record weekly inflows into cryptocurrency exchange-traded products (ETPs). For the year to date, crypto ETPs have seen inflows of $10.3 billion, nearly matching the total for 2021. Bitcoin accounted for most of this figure, with $2.6 billion in inflows. The surge in Bitcoin price coincides with the London Stock Exchange accepting Bitcoin and Ether exchange-traded notes and greater acceptance of crypto-related financial products by the UK Financial Conduct Authority.
Bitcoin (BTC) has hit a fresh all-time peak, surging above $72,000, buoyed by a week of record-breaking inflows into cryptocurrency exchange-traded products (ETPs). CoinShares analyst, James Butterfill, communicated on March 11 that investment products related to cryptocurrency racked up a historic $2.7 billion worth of inflows as at March 8. Throughout the current year, crypto ETPs chalked up a staggering $10.3 billion in inflows, almost matching the combined $10.6 billion seen for the entirety of 2021. Remarkably, crypto ETPs have noted $2.7 billion of inflows in the past week alone. Bitcoin dominated these figures, recording $2.6 billion in inflows this year so far, and making up 14% of all global crypto-centric assets under management (AUM). Come March 11, the Bitcoin price soared to reach a record-breaking $72,900. The value has since stabilized and trades at approximately $72,000; marking an increase of 6.9% over the past week and 29% over the previous month, according to data from TradingView. The inflow into crypto ETPs has been driven predominantly by successive investments into an array of newly-approved spot Bitcoin ETFs in the U.S, which have now churned over $110 billion in combined trading volume since their existence began on Jan. 11. Bloomberg ETF analyst, James Seyffart, pointed out that five American spot Bitcoin ETFs now boast an AUM exceeding $2 billion, featuring the BITB fund from crypto-native asset management firm Bitwise, as the most recent entrant. "Of the approximate 3,500 US ETPs, only 445 possess over $2 billion in assets," Seyffart added. In a review seen by Cointelegraph, IG market analyst Tony Sycamore projected the current surge could potentially steer Bitcoin's value towards $80,000 in the coming months and stated the cryptocurrency would be "well supported" in case of any potential downturns. According to Mikkel Morch, founder of digital asset investment fund ARK36, Bitcoin reaching a new high also aligns with the London Stock Exchange greenlighting exchange-traded notes for Bitcoin and Ether (ETH), as well as the UK Financial Conduct Authority's growing openness to accept new finance products linked to cryptocurrency. Morch stated these substantial regulatory changes not only underline London's intent to retain its standing in global finance but also indicate broader acceptance and incorporation of digital currencies. Additionally, he highlighted the growing global recognition of crypto-assets, the imminent Bitcoin halving event, and the sustained influx into Bitcoin ETFs, as paving the way for a "new era of growth and widespread adoption of cryptocurrencies." Morch concluded, "The combined effect of these elements will likely maintain the bullish trend and cultivate a more robust and diverse investment scenario for digital assets.
Published At
3/12/2024 8:56:07 AM
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