Bitcoin has reached a new all-time high this week, soaring to a whopping $111.814. This comes at a time when interest in cryptocurrencies – and in particular exchange-traded funds (ETFs) – has seen unprecedented growth. What does this mean for the crypto market, and how can we interpret the latest developments?
In recent days, Bitcoin and Ethereum ETFs have collectively received over $1 billion in new investments, marking the largest combined inflows in the past five months. Interest in crypto products is growing rapidly, and the numbers speak for themselves: the BlackRock iShares Bitcoin Trust (IBIT) was responsible for the largest portion of these inflows, with a whopping $877 million in net influence. This is the third highest daily inflow for these funds and marks the continuation of a strong trend.
“It’s great to see the market maintaining this momentum,” said Sumit Roy, a senior ETF analyst. “Bitcoin hitting new all-time highs is really driving interest.” This is evident from the fact that Bitcoin has gained more than 48% in value since the beginning of April, helped by positive economic signals and a growing view that BTC a safe haven in uncertain times.
This week, Bitcoin is not only breaking records in price, but also in asset inflows: over $1,9 billion in the first four days of this week alone. This is the third time this month that IBIT has raked in over a billion in assets. For comparison, the weeks of April 28 and May 5 saw $2,4 billion and $1 billion respectively. Since the fund’s inception in January 2024, IBIT has already raked in nearly $41 billion in net exposure. This performance outperforms the next closest competitor, the Fidelity Wise Origin Bitcoin Trust (FBTC), by more than four times.
And as for Ethereum? Ethereum ETFs also saw inflows above $110 million this week, with the likes of Grayscale and Fidelity leading the way. Despite recently lagging Bitcoin’s price, Ethereum has seen impressive growth of over 46% over the past month. The price currently stands at $2.565, down slightly from 3,5% on Thursday but still impressive looking back on the month.
The BlackRock iShares Ethereum Trust (ETHA) has amassed over $4,3 billion in net exposure, more than double that of its next closest competitor. The eight available ETFs have generated over $2,7 billion in net exposure in total. Grayscale’s ETHE, however, has seen strong net outflows, suggesting that not all funds are having the same level of success. An interesting observation from Bloomberg analyst James Seyffart: “Ethereum ETFs aren’t breakouts, but they’re not bad either. Inflows are strong, but the underlying price is holding down the asset level.”
“Who would have thought that crypto investments would light such a fire?” This makes the future of crypto unpredictable and exciting. As an investor or interested in the digital economy, this is the time to stay well informed about developments in the market. Will we continue this upward trend, or will we see a new turn?
What Contributed to Bitcoin's Recent Rise?
Bitcoin's rise can be attributed to increasing demand for cryptocurrency ETFs, positive economic signals, and the response from investors who see BTC as a safe haven in uncertain times.
How Do Ethereum ETFs Compare to Bitcoin ETFs?
While Ethereum ETFs have also seen significant inflows, they continue to lag the record performance of Bitcoin ETFs like the BlackRock iShares Bitcoin Trust.
What is the current price of Bitcoin and Ethereum?
Bitcoin has hit a record high of $111.814 this week, while Ethereum was recently at $2.565, up 46% over the past month.