Bitcoin ETFs recorded nearly $1 billion in inflows in two days as the cryptocurrency’s price soared to nearly $70,000.
ETF guru Nate Geraci said the investor crowd for X, led by buyers of BlackRock’s IBIT and Fidelity’s FBTC exchange-traded funds, was impressive compared to other mutual funds. Ta.
“For context, of the more than 560 ETFs launched in 2024, only eight raised more than $1 billion in capital in a year,” he said.
The move comes as Bitcoin prices hit around $68,257 on Wednesday, riding on investor optimism.
The coin has appreciated about 52% this year.
It’s not just ETFs linked to Bitcoin that have soared.
Funds that track the U.S. benchmark S&P 500 index, with just a few months left until 2024, led this year’s massive inflows of $772 billion, about 85% of the way to a new annual record. Reached.
Bloomberg Intelligence analyst Eric Balciunas, citing Bloomberg data, called the influx “Fromageddon.”
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According to BitMEX founder Arthur Hayes, the price of Bitcoin will rise even higher in the long run due to rising tensions in the Middle East and the Federal Reserve lowering borrowing costs.
Hayes wrote in a blog post this week that the disruption “will cause Bitcoin and cryptocurrencies to rise as energy prices soar.”
Meanwhile, “hundreds of billions or trillions of newly printed dollars will reinvigorate the Bitcoin bull market.”
Still, Hayes cautions, “Just because Bitcoin goes up over time doesn’t mean there won’t be wild price swings, and it doesn’t mean all the crappy coins will share in the glory.”
