The price of Bitcoin has hit a significant high of $47,000, which is reported to be spurred by the latest ETF inflows.
On Friday, the crypto asset rose more than 4%, a level not seen since March 2022, while Ethereum surged by 3% over the last 24 hours to break above $2,511.75 for the first time since January 18.
Speaking on the recent surge in the price of Bitcoin, CEO and Chief Investment Officer at Defiance ETFs Sylvia Jablonski said,
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“The recent price appreciation of Bitcoin could be attributed to recent inflows into the spot ETFs, the prospect of the halving around the corner, which tends to generate optimism from investors as prices often shoot up after, and general market momentum. In the past, there have been parallels between Bitcoin and tech stocks. Lower rates, falling inflation, earnings growth, and indices like the S&P 500 hitting groundbreaking levels certainly improve risk sentiment for the asset class.”
Reports reveal that new spot Bitcoin ETFs have attracted significant interest with a streak of 10 consecutive days of net inflows, reaching $8 billion as of this week, indicating strong investor demand.
BlackRock’s (BLK) iShares Bitcoin Trust (IBIT) has been the clear leader in fund inflows since the spot bitcoin ETFs launched on Jan. 11 with nearly $3.23 billion in inflows as of Feb. 8, according to Bloomberg data.
On the other hand, the Fidelity Wise Origin Bitcoin Fund (FBTC) ranks second at $2.8 billion in inflows. Bitwise Bitcoin ETF (BITB) saw $696 million in total inflows as of Feb. 8 followed by the ARK 21Shares Bitcoin ETF (ARKB) at $695 million.
Grayscale Bitcoin Trust (GBTC) recorded about $6.23 billion in outflows as of Feb. 8, which have steadily slowed. Still, Grayscale remains the leader in terms of assets, with $21.23 billion in assets under management, followed by Shares of Bitcoin Trust at $3.44 billion.
Several analysts predict more inflows in ETFs, as Valkyrie co-founder and CIO, Steven McClurg expects $10 billion or more to enter spot bitcoin ETFs by the end of the year, with around $2 billion to $3 billion in the first anticipated week of trading. He also thinks Bitcoin price will hit $150,000 before 2024 ends.
On Thursday, bitcoin passed $45,000 for the first time since Jan. 12, the day after U.S. bitcoin ETFs began trading. The cryptocurrency has struggled to maintain its pre-ETF highs but has avoided falling to as low as $36,000, as expected. It has not fallen below $39,000 in the past month.
As Bitcoin surges to a key resistance level, analysts predict that the price will skyrocket to a new all-time high.