Wall Street has been shaken by the emergence of Bitcoin ETFs, causing both excitement and concern among investors. While some see ETFs as a way to increase adoption and legitimacy for BTC, others worry about potential market manipulation and regulatory hurdles.
The introduction and approval of Bitcoin ETFs have sparked heightened interest and apprehension among Wall Street investors and institutions. These ETFs offer a regulated and convenient method for traditional investors to gain exposure to BTC’s price movements without directly owning the cryptocurrency.
Bitcoin has firmly established itself with the introduction of ETFs. These ETFs are revolutionizing the market for the original cryptocurrency in the United States, leading to increased demand and net inflows of over $7 billion in less than two months.
One notable change is the significant 45% increase in the price of the largest digital asset this year, nearing $63,000 and approaching the pandemic-era record high of nearly $69,000. The upcoming halving, which will result in a decrease in Bitcoin supply growth, has further fueled this surge.
BTC trading is now centered in the United States due to the ETFs, encouraging leveraged bets that have driven the cost of bullish wagers through perpetual futures to levels not seen since 2021.
BTC has experienced a six-day consecutive surge, with its value increasing by 23% during this period. As of 8:03 a.m. on Thursday in New York, it was trading at $62,597, nearly reaching $64,000 on Wednesday.
The funding rate for Bitcoin perpetual futures, which are popular among cryptocurrency speculators due to their indefinite expiry date, has reached its highest level since 2021. This indicates that traders are rushing to speculate on gains and are willing to pay fees to short-term speculators to maintain their positions.
On February 28, spot BTC ETFs attracted over $680 million in investments. The daily inflows are credited to five of the ten players approved by the US Securities and Exchange Commission: iShares Bitcoin Trust ($612.1 million), Fidelity Wise Origin BTC Fund ($245.2 million), Bitwise Bitcoin ETF ($9.9 million), ARK 21Shares BTC ETF ($23.8 million), and WisdomTree BTC ETF ($2.2 million).
However, the Grayscale Bitcoin Trust saw withdrawals of $216.4 million, reducing overall inflows from $893.2 million to $676.8 million. Since February 12, the spot Bitcoin ETF market in the United States has received a total of $7.4 billion in inflows. In contrast, the market has experienced outflows of over $7.8 billion due to significant withdrawals from Grayscale.
As of February 28, iShares remains the largest contributor to Bitcoin ETFs in the United States, with a total of $7.15 billion. The cumulative inflow into spot BTC ETFs has reached approximately $7.4 billion.
At the time of writing, BTC is valued at $62,960.44, showing a 0.0% change from an hour ago and a 3.0% increase from yesterday. BTC’s value today is 23.1% higher than it was a week ago.
The global crypto market cap now stands at $2.44 trillion, rising by 4.55% in the last 24 hours and 120.51% from a year ago. BTC holds a market cap of $1.25 trillion, representing a 50.95% dominance. Meanwhile, stablecoins have a market cap of $143 billion, accounting for 5.84% of the overall crypto market cap.
