Wall Street Exchange-Traded Funds (ETFs) are significantly increasing their Bitcoin acquisition rates, outstripping the network’s production capacity by a factor of 12.5. This surge in demand has propelled the price of Bitcoin to a substantial $50,000, reflecting the intensified interest from institutional investors.
Eric Balchunas hails the “strong week 3” of the Nine Bitcoin Spot ETFs, highlighting their $500 million net inflows over six days despite GBTC outflows. This sustained investor interest defies post-launch slowdown expectations, suggesting these ETFs could have “legs” in the market.
The cryptocurrency market is witnessing a surge in institutional interest in Bitcoin, driven by the recent launch of nine new Bitcoin ETFs. These funds have collectively acquired a staggering 102,613 BTC within just seven days of trading, highlighting a rapid pace of accumulation that dwarfs even established players like MicroStrategy, which took 300 days to purchase over 100,000 BTC.
Arkham Intelligence, a crypto tracker, has detected a massive movement of dormant bitcoin worth $2 billion. The bitcoin had not moved since 2019, and only once since 2013. The movement coincides with the launch of spot bitcoin ETFs in the U.S. market, which have attracted record trading volumes.
Vanguard, one of the world’s largest asset managers, has decided not to offer Bitcoin futures ETFs on its platform, citing its conservative investment philosophy and the high-risk nature of cryptocurrencies. This decision has sparked criticism from some crypto supporters, who accuse the company of being outdated and missing out on the opportunities of digital assets.
In a groundbreaking development, the Securities and Exchange Commission (SEC) has officially granted approval for the listing of the inaugural spot Bitcoin Exchange-Traded Funds (ETFs) in the United States. This landmark decision is set to reshape the landscape of Bitcoin adoption within traditional financial markets. The green light for spot Bitcoin ETFs is anticipated to provide investors with direct exposure to BTC, fostering a new era of accessibility and regulation within the burgeoning Bitcoin market.
Arthur Hayes, the founder of cryptocurrency exchange BitMEX, said he expects Bitcoin to experience a healthy correction of 20% to 30% from its current level by early March, and possibly more if the US-listed spot Bitcoin ETFs start trading by then.