Bitcoin ETFs posted a two-day inflow bonanza of almost $1 billion as the cryptocurrency’s price jumped to almost $70,000.
The investor pile-in, led by those buying BlackRock’s IBIT and Fidelity’s FBTC exchange-traded funds, was impressive relative to others, said ETF guru Nate Geraci on X.
“For context, only eight out of 560+ ETFs launched in 2024 have taken in more than $1 billion for the year,” he said.
The moves come as Bitcoin’s price rides optimistic investor sentiment to reach about $68,257 on Wednesday.
The coin has rallied some 52% this year.
It wasn’t just ETFs tracking Bitcoin that have soared.
Funds tracking the US benchmark S&P 500 led a whopping $772 billion in inflows this year — about 85% of the way toward breaking the annual record — with a few months to go yet in 2024.
Bloomberg Intelligence analyst Eric Balchunas, citing Bloomberg data, dubbed the influx “flowmageddon.”
In the longer term, Bitcoin’s price will further soar even higher amid rising tensions in the Middle East and as the Federal Reserve lowers borrowing costs, according to BitMEX founder Arthur Hayes.
“Bitcoin and crypto will rise as energy prices spike higher” due to the turmoil, Hayes wrote in a blog post this week.
Meanwhile, “the hundreds of billions or trillions of newly printed dollars will re-energise the Bitcoin bull market.”
Still, Hayes cautions: “Just because Bitcoin will rise over time doesn’t mean there won’t be intense price volatility, nor does it mean every shitcoin will share in the glory.”
