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Bitcoin ETFs in the US See Record Inflows as Token Approaches All-Time High

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Bitcoin ETFs See Record Inflows for 18th Straight Day, Pushing Digital Asset Toward Record High

US Bitcoin ETFs See Record Inflows for 18th Straight Day, Pushing Cryptocurrency Toward All-Time High

In a historic streak of demand, US exchange-traded funds investing directly in Bitcoin have attracted net inflows for an unprecedented 18th consecutive day. This surge of interest has helped propel the largest digital asset towards a record high.

According to data compiled by Bloomberg, net subscriptions for nearly a dozen Bitcoin ETF products totaled $15.6 billion through Thursday, following their launch on January 11. This influx of capital has boosted total assets in these funds to $62.3 billion.

Despite a report showing strong US job growth in May, with an unexpected rise in the unemployment rate, Bitcoin has continued to climb. As of 8:36 a.m. in New York, the cryptocurrency was trading at around $70,925, while Ether remained stable at $3,785.

The success of Bitcoin funds from major financial institutions like BlackRock Inc. and Fidelity Investments has been remarkable, with these products ranking among the most successful debuts in the ETF sector’s history. This influx of institutional interest has shifted the center of gravity for cryptocurrencies from Asia to the US.

Many options market speculators are anticipating that Bitcoin will surpass its previous all-time high of $73,798 this month, driven by ETF demand and expectations of future Federal Reserve interest-rate cuts.

Sean Farrell, head of digital-asset strategy at Fundstrat Global Advisors LLC, noted, “There have been massive inflows into spot-Bitcoin ETFs. Macro continues to trend in crypto’s favor, with economic growth slower at a non-recessionary pace and signs of disinflation continuing.”

Last week, BlackRock’s $21.4 billion iShares Bitcoin Trust became the world’s largest fund for the token, surpassing Grayscale Investments LLC’s $20.1 billion Bitcoin trust. Fidelity’s $12.3 billion Wise Origin Bitcoin Fund holds the third spot.

The US Securities and Exchange Commission reluctantly allowed spot-Bitcoin ETFs in January, following a court reversal in 2023. The agency also recently signaled approval for funds related to the second-largest cryptocurrency, Ether.

Despite some regulatory challenges, the digital-asset industry is gaining traction, with efforts in Congress to provide legislative clarity for cryptocurrencies. Ophelia Snyder, president of crypto ETF provider 21 Shares AG, believes that adoption of digital-asset funds is still in its early stages for institutions and intermediaries.

As Bitcoin continues its meteoric rise, surpassing four times its value since the beginning of last year, the cryptocurrency market is experiencing a resurgence that has overshadowed the challenges of the past.

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