Mar 12, 2024 at 05:00Bitcoin has surged to unprecedented levels, surpassing $72,000, driven by an extraordinary influx of funds into cryptocurrency exchange-traded products (ETPs).
The price of Bitcoin (BTC) has skyrocketed, reaching new all-time highs exceeding $72,000, following an extraordinary week of inflows into crypto ETPs.
CoinShares analyst James Butterfill reported on March 11 that crypto investment products attracted an unprecedented $2.7 billion in inflows by March 8.
Year-to-date, crypto ETPs have drawn in $10.3 billion, nearly matching the total inflows of $10.6 billion witnessed throughout 2021.
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Bitcoin dominated this surge, with $2.6 billion in inflows so far this year, representing 14% of the total global assets under management (AUM) in the crypto sphere.
On March 11, Bitcoin reached a new peak of $72,900, later stabilizing around $72,000, marking a 6.9% increase over the past week and a 29% rise in the last month, according to TradingView data.
The significant inflows into crypto ETPs have been fueled by growing investment in recently approved spot Bitcoin exchange-traded funds (ETFs) in the United States, collectively amassing over $110 billion in traded volume since their launch on Jan. 11.
Bloomberg ETF analyst James Seyffart noted that five U.S. spot Bitcoin ETFs now manage over $2 billion in assets, with Bitwise’s BITB fund being the latest addition.
“Out of ~3,500 US ETPs there are only 445 with over $2 billion in assets,” Seyffart observed.
IG market analyst Tony Sycamore suggested in an analyst note seen by Cointelegraph that Bitcoin could push toward $80,000 in the coming months, supported by a robust market even during potential downturns.
Mikkel Mørch, founder of digital asset investment fund ARK36, noted that Bitcoin’s surge coincided with the London Stock Exchange accepting Bitcoin and Ether (ETH) exchange-traded notes, alongside increased regulatory acceptance from the UK Financial Conduct Authority for new crypto financial products.
“This regulatory shift signals broader acceptance and institutionalization of cryptocurrencies,” Mørch remarked.
He pointed to increasing regulatory acceptance worldwide, the upcoming halving event, and the continuous growth of Bitcoin ETF inflows as indicators of a new era of growth and mainstream adoption for cryptocurrencies, fostering a more resilient investment landscape.
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