US exchange-traded funds (ETFs) that invest directly in Bitcoin (BTC) have seen net inflows for a record-breaking 18 consecutive days, contributing to the alpha crypto’s nudge toward a new all-time high (ATH).According to data compiled by Bloomberg, net subscriptions for the group of nearly a dozen products reached $15.6 billion through Thursday since their launch on January 11, bringing total assets to $62.3 billion.Bloomberg reports that the Bitcoin funds offered by major players like BlackRock Inc. and Fidelity Investments have emerged as some of the most successful debuts in the ETF sector’s history. The report also claims that the crypto industry’s “center of gravity” is shifting back from Asia to the US.
ETF demand and expectations of future Fed interest-rate cuts are highlighted as factors for considering how Bitcoin would surpass its most recent ATH of $73,798 before June ends.Sean Farrell, head of digital-asset strategy at Fundstrat Global Advisors LLC, noted the “massive inflows into spot-Bitcoin ETFs” and stated that the macro environment continues to favor crypto, with slower economic growth at a non-recessionary pace and ongoing signs of disinflation.Compounding this projection, BlackRock’s $21.4 billion iShares Bitcoin Trust has become the world’s largest fund for the token, surpassing Grayscale Investments LLC’s $20.1 billion Bitcoin trust. The $12.3 billion Fidelity Wise Origin Bitcoin Fund ranks third.The US Securities and Exchange Commission (SEC) reluctantly allowed spot-Bitcoin ETFs in January following a court reversal in 2023. In May, the agency also surprisingly pivoted toward approval of funds for Ether, the second-largest cryptocurrency.However, under Chair Gary Gensler, the SEC remains critical of the digital-asset industry’s alleged non-compliance with regulations, while Congressional efforts to provide legislative clarity for crypto have recently gained momentum, with more support from the Senate and federal judiciary courts to strike down the SEC’s overreach in other sectors such as traditional finance and banking.
