The value of Bitcoin is inching closer to a record high, thanks to a continued surge in ETF investments.
U.S. exchange-traded funds (ETFs) that directly invest in Bitcoin (BTC) have achieved net inflows for 18 consecutive days, making a significant contribution to Bitcoin's approach to a new all-time high (ATH).
Data compiled by Bloomberg showed that net subscriptions to nearly a dozen bitcoin ETF products reached $15.6 billion on Thursday since their launch on Jan. 11, bringing total assets to $62.3 billion.
According to Bloomberg, Bitcoin funds offered by major players such as BlackRock Inc. and Fidelity Investments have become one of the most successful debuts in the history of the ETF space. The report also noted that the center of gravity of the cryptocurrency industry is shifting back to the United States from Asia.
ETFs’ expected impact on rate cuts
ETF demand and expectations of future Fed rate cuts are considered key factors in considering Bitcoin could surpass its recent all-time high of $73,777 by the end of June.
Sean Farrell, head of digital asset strategy at Fundstrat Global Advisors LLC, pointed to the huge inflows into spot bitcoin ETFs and said the current macroeconomic environment continues to be favorable for cryptocurrencies, with economic growth slowing but not falling into recession while inflation shows signs of slowing.
In addition, BlackRock's $21.4 billion iShares Bitcoin Trust has become the world's largest Bitcoin fund, surpassing Grayscale Investments LLC's $20.1 billion Bitcoin Trust. Fidelity Wise Origin Bitcoin Fund ranked third with $12.3 billion. #比特币ETF #资金流入
SEC Moves Toward Approval of Ethereum ETF
The U.S. Securities and Exchange Commission (SEC) had to reluctantly approve the launch of a spot Bitcoin exchange-traded fund (ETF) in January after a court ruling reversed in 2023. #ETHETF
Then, in May, the SEC unexpectedly changed its tune and approved funding for Ethereum, the world’s second-largest cryptocurrency, a decision that marked a major shift in its regulatory stance.
However, under Chairman Gary Gensler, the SEC has been critical of the digital asset industry’s alleged lack of compliance.
Meanwhile, congressional efforts to provide legislative clarity for cryptocurrencies have recently gained momentum, with more support from the Senate and federal judicial courts to combat SEC overreach in other areas such as traditional finance and banking.
Conclusion:
With record capital inflows into Bitcoin ETFs in the U.S. market and the SEC's gradual shift in its regulatory attitude toward cryptocurrencies, the cryptocurrency industry is entering a new stage of development. The active participation of large financial institutions such as BlackRock and Fidelity has not only injected confidence into the market, but also paved the way for mainstream adoption of cryptocurrencies. Despite facing strict scrutiny from regulators, the industry's self-adjustment and the support of legislatures provide a solid foundation for the future development of cryptocurrencies.
At the same time, the optimization of the macroeconomic and regulatory environment is expected to drive cryptocurrencies such as Bitcoin to continue to attract investment and may quickly set new highs. This will also promote the widespread application and deep integration of the cryptocurrency ecosystem, while enhancing the United States' position as a global cryptocurrency innovation center.
