As the optimism of spot Bitcoin ETFs spread to the broader crypto market, Bitcoin investment funds held more than 860,000 BTC last week, accounting for about 4.1% of the global circulation, setting a record high. At the same time, the inflow of Bitcoin investment funds last week reached US$390 million, more than double the previous week. This data shows that investors are confident in the long-term value and future prospects of Bitcoin, and also reflects the driving role of Bitcoin ETFs.
A Bitcoin ETF is a financial product that can be listed and traded on a traditional exchange. It tracks the price of Bitcoin and provides investors with a more convenient, safer and more compliant way to participate in the Bitcoin market. Currently, the U.S. Securities and Exchange Commission (SEC) is reviewing multiple Bitcoin ETF applications and is expected to make a decision by the end of this year or early next year.
If the SEC approves a Bitcoin ETF, it will bring huge liquidity and demand to the Bitcoin market, thereby driving Bitcoin prices up further. Therefore, many investors have begun to make early arrangements and bet on the listing of Bitcoin ETFs by purchasing Bitcoin investment funds. This is also why we have seen a surge in inflows into Bitcoin investment funds.
I believe this is a very positive and smart strategy, as a Bitcoin ETF will not only add more legitimacy and transparency to the Bitcoin market, but will also open the door for more institutional and retail investors to more easily enjoy Bitcoin's high returns and low correlation. I believe that if the optimism around a Bitcoin ETF continues to grow, we will see more money pouring into Bitcoin investment funds, driving a new round of bull market in the Bitcoin market.
To put it simply, the more BTC rises, the more people buy BTC investment funds. The more people buy BTC investment funds, the more BTC rises. This is the reason why you can reach the sky by stepping on your right foot with your left foot.
