With Bitcoin’s value skyrocketing past the $50,000 milestone, a significant portion of new investments in the cryptocurrency can be attributed to the emergence of Exchange-Traded Funds (ETFs), according to a recent report by CryptoQuant. Approximately 75% of fresh capital inflows into Bitcoin can be traced back to the ten newly approved spot Bitcoin ETFs in the United States.
Over the past two weeks, the majority of new investments in Bitcoin, excluding Grayscale’s Bitcoin Trust (GBTC) ETF, have come from spot Bitcoin ETFs. This surge in investment, accounting for over three-quarters of the influx, marks a significant shift in market dynamics. These ETFs have accumulated approximately 4,115 Bitcoins, equivalent to an astonishing $215 million, according to data from Farside Investors.
Leading the inflows among spot Bitcoin ETFs is BlackRock’s iShares Bitcoin Trust ETF. With a total acquisition of 4,843 Bitcoins, valued at about $253 million at the time, this ETF has demonstrated significant investor confidence in Bitcoin as a lucrative investment avenue.
The surge in Bitcoin’s price, reaching a notable high of $51,000 on February 14th, is largely attributed to the increasing demand from ETFs. Julio Moreno, the head of research at CryptoQuant, emphasized that the crossing of the $50,000 mark by Bitcoin can mainly be attributed to the fresh demand from these investment vehicles.
According to the CryptoQuant research report, Bitcoin is expected to surpass the $56,000 threshold in the near future, despite facing significant resistance around the $52,000 mark. Valuation indicators suggest a bullish outlook with minimal risks of a substantial price correction. However, market analysts caution that Bitcoin may encounter hurdles in surpassing the $52,000 mark due to a notable influx of sell orders on Bitfinex up to the $52,300 level.
