Bitcoin is on the cusp of achieving its longest winning streak in a year, buoyed by the historic launch of exchange-traded funds (ETFs) for the cryptocurrency. The digital asset edged up approximately 1% to $48,436 as of 9:50 a.m. Monday in Singapore, positioning for a seventh consecutive daily gain, the lengthiest streak since January 2023, according to data compiled by Bloomberg.
- The introduction of nine new spot Bitcoin funds in the US on Jan. 11 has garnered over $9 billion in investor inflows thus far. Notably, offerings from industry giants BlackRock Inc. and Fidelity Investments have emerged as the most successful ETF launches in terms of assets accumulated within the first month, as noted by Bloomberg Intelligence analysts Eric Balchunas and James Seyffart.
Caroline Bowler, CEO of crypto platform BTC Markets Pty, highlighted signs of a significant influx of institutional capital into the cryptocurrency market, underscoring the growing institutional interest in Bitcoin.
The transition of the decade-old Grayscale Bitcoin Trust, the largest Bitcoin-focused portfolio, into an ETF on the same day as the new funds’ debut has contributed to the momentum. Despite a slowdown in outflows from the Grayscale vehicle, the batch of 10 ETFs has collectively attracted a net inflow of $2.8 billion.
Last year, anticipation surrounding the ETFs spurred a revival in Bitcoin prices, briefly pushing the token above $49,000 on the day of their launch. However, a subsequent multiday selloff of $10,000 ensued as investors locked in profits and monitored the ETFs’ performance. The recent rebound has brought the $50,000 threshold into focus, a level last reached in 2021.
Optimism regarding the upcoming quadrennial Bitcoin halving event scheduled for April is further bolstering sentiment across the cryptocurrency market. The halving reduces the amount of Bitcoin awarded to miners, historically supporting prices. Additionally, sentiment toward Bitcoin tends to be positive during the Lunar New Year holidays currently underway in Asia, according to Fundstrat Global Advisors.
Despite the recent gains, Bitcoin remains approximately $20,000 below its all-time high reached during the pandemic-induced bull run of 2021, fueled by accommodative monetary policies.
In conclusion, Bitcoin’s ascent, supported by the influx of institutional capital and the landmark debut of ETFs, underscores growing confidence in the cryptocurrency’s long-term prospects amidst evolving market dynamics.
