Bitcoin eyes longest winning run in a year as ETFs attract inflows

BITCOIN is flirting with a profitable run final seen a yr in the past, aided by the record-breaking debut of US exchange-traded funds (ETFs) for the token.

The digital asset rose about 1 per cent to US$48,436 as of 9.50 am Monday (Feb 12) in Singapore, poised for a seventh straight each day acquire that may mark the longest such streak since January 2023 if the advance holds, information compiled by Bloomberg present.

Nine new spot Bitcoin funds started buying and selling within the US on Jan 11 and have attracted greater than US$9 billion of investor inflows up to now.

Two of the choices, from BlackRock and Fidelity Investments, rank as probably the most profitable ETFs launched primarily based on property garnered after a month in the marketplace, Bloomberg Intelligence analysts Eric Balchunas and James Seyffart wrote in a observe. 

There are indications of an “increasing movement of institutional money into the asset class,” Caroline Bowler, chief government officer at crypto platform BTC Markets Pty, mentioned on Bloomberg Television.

The greater than decade-old Grayscale Bitcoin Trust, the biggest portfolio devoted to the token, transformed into an ETF the identical day the brand new funds went dwell. A greater than US$6 billion outflow from the Grayscale car has slowed. The batch of 10 ETFs have attracted a internet US$2.8 billion general.

Hype over the ETFs fueled a Bitcoin revival final yr, briefly taking the token previous US$49,000 on the day they started buying and selling. A multiday, US$10,000 selloff then ensued as buyers booked earnings and waited to see how the ETFs fared.

The subsequent rebound has introduced US$50,000 into view, a degree final seen in 2021.

Optimism in regards to the quadrennial Bitcoin halving due in April can also be filtering throughout crypto.

Halving cuts the amount of Bitcoin that miners obtain for working the highly effective computer systems that confirm transactions on the blockchain. The occasion is usually considered a assist for costs primarily based on historic precedent.

Aside from ETF inflows, sentiment towards Bitcoin is “typically positive” throughout the Lunar New Year holidays which might be presently underway in Asia, Fundstrat Global Advisors wrote in a observe.

Bitcoin stays about US$20,000 under the report excessive the token hit in 2021, throughout a pandemic-era bull run oiled by straightforward cash. BLOOMBERG