“Bitcoin’s winning streak continues as ETFs attract more investment, marking the longest run in a year. Stay updated on the latest developments in the cryptocurrency market with Companies & Markets. Don’t miss out on this opportunity to stay ahead in the game!”
Bitcoin is making a comeback, thanks to the successful launch of US exchange-traded funds (ETFs) for the token. The digital asset has seen a seven-day winning streak, the longest since January 2023, and is currently trading at around US$48,436. The new spot Bitcoin funds that began trading in the US on Jan 11 have already attracted over US$9 billion in investor inflows.
BlackRock and Fidelity Investments, two of the offerings, rank as the most successful ETFs launched based on assets garnered after a month on the market. This surge in institutional interest in Bitcoin is evident, with the Grayscale Bitcoin Trust, the largest portfolio dedicated to the token, converting into an ETF on the same day the new funds went live.
The hype surrounding the ETFs has fueled a Bitcoin revival, briefly pushing the token past US$49,000 last year. After a selloff, the subsequent rebound has brought US$50,000 into view, a level last seen in 2021. The upcoming Bitcoin halving in April is also contributing to the optimism in the crypto market, with historical precedent suggesting that it could support prices.
Aside from ETF inflows, sentiment toward Bitcoin is typically positive during the Lunar New Year holidays currently underway in Asia, according to Fundstrat Global Advisors. Despite this, Bitcoin remains about US$20,000 below the record high it hit in 2021. With more investors and institutional money moving into the asset class, this could be the beginning of a new bull run for Bitcoin.