ETFs
Bitcoin ETFs Witness 18 Straight Days of Inflows, Options Traders Eye $100,000
US spot Bitcoin ETFs have seen a notable streak of net inflows for 18 consecutive days, contributing to the upward momentum of the leading cryptocurrency as it approaches its record levels set in March.
According to Bloomberg dataThese ETFs, managed by some of the world’s largest financial institutions, have attracted net subscriptions of $15.6 billion since their launch on January 11, bringing total assets under management to a substantial $62.3 billion .
Record demand for Bitcoin ETFs
According to Bloomberg, the success of the Bitcoin ETFs introduced by BlackRock and Fidelity Investments made them one of the most successful launches in the world. ETF sector history.
These products have significantly influenced the center of gravity of cryptocurrency investments, shifting it from Asia to the United States.
Sean Farrell, Head of Digital Asset Strategy at Fundstrat, highlighted the significant inflows into spot Bitcoin ETFs and noted that the Macroeconomic Environment promotes the cryptocurrency market. Economic growth is progressing at a “non-recessive pace” and signs of disinflation persist.
Recently, BlackRock’s iShares Bitcoin Trust, with $21.4 billion in assets, became the world’s largest Bitcoin fund, surpassing Grayscale’s $20.1 billion Bitcoin trust (GBTC). On the other hand, the Fidelity Wise Origin Bitcoin Fund (FBTC), with $12.3 billion in assets, currently occupies the third position.
The United States Securities and Exchange Commission (SEC), which had been cautious about digital assetsreluctantly allowed spot Bitcoin ETFs in January due to a court reversal in its 2023 lawsuit against Grayscale.
Although the SEC remains critical of the digital assets industry’s compliance with regulations, recent efforts by Congress to establish clearer legislative frameworks for cryptocurrencies have gained momentum.
BTC options traders target $100.00
In addition to Bitcoin ETF inflows, options traders are becoming increasingly optimistic about the future of Bitcoin. Open interest focuses on purchase options with strike prices of $75,000, $100,000 and $80,000.
Luuk Strijers, CEO of Deribit, the largest crypto options exchange, note the bullish sentiment in the BTC options market. Traders expect new all-time highs, driven by strong Bitcoin ETF flows, expectations of U.S. interest rate cuts, European Central Bank rate cuts and recent approval of an ETH ETF.
As Bitcoin saw a slight pullback from its all-time high of $73,700 set in March, fresh inflows into Bitcoin ETFs and expectations of interest rate the reductions have revived optimism among traders. Call options expiring in late June and December are particularly active, indicating positive short- and long-term prospects.
At press time, the largest cryptocurrency on the market managed to surpass the $70,000 mark. Its gains over the past seven days amount to 5%, favoring the BTC price and resulting in a current value of $71,320.
Featured image of DALL-E, chart by TradingView.com