ETFs
US Bitcoin ETFs Post Longest Streak of Entries as Token Nears Record
(Bloomberg) — U.S. exchange-traded funds investing directly in Bitcoin attracted net inflows for an unprecedented 18th straight day, a surge in demand that helped propel the largest digital asset to an all-time high.
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Net subscriptions for this group of nearly a dozen products stood at $15.6 billion through Thursday after a Jan. 11 launch, bringing total assets to $62.3 billion, according to the data compiled by Bloomberg.
Bitcoin funds from BlackRock Inc. and Fidelity Investments are among the most successful debuts in the history of the ETF industry. They took Wall Street by storm, tilting crypto’s center of gravity toward the United States from Asia.
Many speculators in the options market predict that Bitcoin will surpass March’s all-time high of $73,798 this month, helped by demand for ETFs and expectations that the Federal Reserve will cut interest rates.
“There have been massive inflows into spot-Bitcoin ETFs,” Sean Farrell, head of digital assets strategy at Fundstrat Global Advisors LLC, wrote in a note. “The macro continues to move in favor of crypto, with slower economic growth at a non-recessive pace and persistent signs of disinflation.”
Last week, BlackRock’s $21.4 billion iShares Bitcoin Trust became the world’s largest fund for the token, surpassing Grayscale Investments’ $20.1 billion Bitcoin trust LLC. In third place is the Fidelity Wise Origin Bitcoin Fund, worth $12.3 billion.
SEC Swivel
The U.S. Securities and Exchange Commission reluctantly authorized Bitcoin spot ETFs in January following a 2023 court reversal. In May, the agency also surprisingly pivoted toward approving funds for the Ether token #2.
The SEC, chaired by Gary Gensler, also criticizes the digital assets sector’s alleged non-compliance with regulations. Congressional efforts to clarify crypto legislation have accelerated of late.
Ophelia Snyder, president of crypto ETF provider 21 Shares AG, said adoption of digital asset funds remains in its infancy for institutions and intermediaries. “The market still has a way to go and we’re still in the early rounds,” she said in an episode of Bloomberg’s Tiger Money podcast that aired Tuesday.
Bitcoin has more than quadrupled since the start of last year. The surge erased memories of a painful bear market in 2022 that exposed fraud and led to the imprisonment of once-celebrated entrepreneurs like Sam Bankman-Fried.
The story continues
Bitcoin was stable at around $71,100 as of 12:35 p.m. Friday in Singapore, while Ether was little changed at $3,810.
–With help from Rebecca Sin and David Ingles.
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