Bitcoin Price Soars Following a Record $2.7 Billion Weekly Inflow into Crypto ETPs
Bitcoin’s value reached an all-time high this week, buoyed by an unprecedented weekly influx into cryptocurrency exchange-traded products (ETPs).
According to a March 11th post by CoinShares analyst James Butterfill, digital asset investment products witnessed a staggering $2.7 billion entry up until March 8th. Year-to-date, crypto ETPs have garnered $10.3 billion in inflows, aligning closely with the entire 2021’s total crypto ETP inflows of $10.6 billion. Bitcoin alone has attracted $2.6 billion of this sum annually, accounting for 14% of the total global cryptocurrency assets under management (AUM).
Subsequent to this financial milestone, Bitcoin’s price surged on March 11th, reaching a new zenith of $72,900. Despite a slight retraction, current TradingView data pins its value around $72,000, marking a 6.9% increase over the past week and a 29% rise over the last month.
The surge in crypto ETP inflows has been notably spurred by the recent approval and operation of several Bitcoin exchange-traded funds (ETFs) in the United States. These ETFs have collectively executed over $110 billion in trades since their launch on January 11th. Bloomberg ETF analyst James Seyffart highlighted that among the 3,500 U.S. ETPs, only 445 boast over $2 billion in AUM, with Bitwise’s native crypto asset manager BITB joining this elite group most recently.
Seyffart’s analysis underscores the exclusivity of ETPs commanding over $2 billion in assets. Meanwhile, IG market analyst Tony Sycamore speculates the ongoing rally might push Bitcoin prices towards $80,000 in the coming months, suggesting crypto assets will likely find strong support in any potential dips. ARK36’s founder Mikkel Mørch observed Bitcoin’s record highs coinciding with significant regulatory shifts, including the London Stock Exchange’s adoption of Bitcoin and Ether securities, and the UK’s Financial Conduct Authority warming up to new digital currencies.
This regulatory momentum, signaling London’s ambition to remain a pivotal financial hub, also reflects the broader acceptance and institutionalization of digital currencies. Mørch points to the compounded effect of increasing regulatory acceptance, the upcoming Bitcoin halving event, and the sustained growth of Bitcoin ETF inflows as harbingers of a new era of mainstream growth and acceptance for digital assets. This confluence of factors is likely to sustain growth and forge a stronger, more diversified investment landscape for digital assets.
