Interest from institutions in Bitcoin is rapidly increasing, with Bitcoin spot ETFs attracting over 50 billion USD just 18 months after launch.
This reflects strong confidence from large investors, as cash flows continuously pour into Bitcoin ETFs, helping the cryptocurrency market maintain impressive growth momentum.
MAIN CONTENT
Bitcoin spot ETFs attracted over 50 billion USD in net capital after 18 months of operation.
BlackRock leads with over 700,000 BTC, accounting for over 55% of the Bitcoin in ETFs in the U.S.
Altcoin ETFs like Solana, XRP, and Litecoin are expected to be approved, expanding investment opportunities for institutions.
What does a cash inflow of 218 million USD into Bitcoin ETFs in one day mean?
A cash inflow of 218 million USD into Bitcoin spot ETFs in one day on July 9 marked five consecutive sessions of growth, demonstrating strong demand from institutional investors.
According to a report from SoSoValue, nearly 1.52 billion USD flowed into this fund in the last 5 trading days. Although there was a net withdrawal of 342 million USD at the beginning of the month, there was a peak day that attracted over 601.94 million USD on July 3, indicating recovery and increased strong confidence in the market.
Why does BlackRock lead with over 700,000 Bitcoins?
BlackRock's iShares Bitcoin Trust (IBIT) holds a leading position in the industry with over 700,000 BTC, equivalent to 55% of the total Bitcoin in spot ETFs in the U.S.
IBIT has attracted 53 billion USD in net cash flow, far surpassing Fidelity's FBTC with 12.29 billion USD and outperforming the Grayscale GBTC fund, which is continuously facing withdrawals, indicating a strong level of trust and prioritization from institutional investors towards BlackRock.
"IBIT is now BlackRock's third-largest revenue-generating ETF, surpassing many long-standing traditional products."
Nate Geraci, CEO of NovaDius Wealth Management, 2024
This data demonstrates the attractiveness and effectiveness of the Bitcoin ETF managed by BlackRock, contributing to their enhanced position in the cryptocurrency finance industry.
Will altcoin ETFs be approved in the near future?
Analysts from Bloomberg assess that there is a 95% chance the SEC will approve spot ETFs for coins like Solana, XRP, and Litecoin in 2024.
The launch of an expanded cryptocurrency index fund could help traditional investors gain easier access to a diverse range of altcoins. In addition to Bitcoin, Ethereum ETFs also recorded significant cash inflows of over 211 million USD in one day, totaling nearly 5 billion USD, signaling high institutional demand for various cryptocurrencies.
Why are institutions interested in investing in Bitcoin?
Cryptocurrency analyst Rachael Lucas points out that this is not a speculative investment wave from individual investors but a strategic shift from asset managers, corporate treasuries, and large investment platforms.
The stability of net cash flows throughout April, May, and June has solidified Bitcoin as a long-term investment asset. The tense geopolitical situation and the U.S. interest rate cuts are seen as factors increasing Bitcoin's attractiveness due to its liquidity when purchased through ETFs like traditional stocks.
"ETFs make investing in Bitcoin much safer and more convenient compared to traditional methods."
Rachael Lucas, Cryptocurrency Analyst, 2024
How has Bitcoin been integrated into corporate treasuries?
In addition to ETFs, many businesses are also starting to integrate Bitcoin into their treasury with multi-million USD transactions. Japan's Metaplanet invested 237 million USD in BTC, while several companies in France and the UK have also made significant purchases.
The Tokyo-listed company Remixpoint raised 215 million USD to buy 3,000 Bitcoins individually. Meanwhile, Bitcoin reached a record high of 112,000 USD, Ether rose 6.6% to 2,778 USD, with analysts assessing the potential to exceed the 3,000 USD threshold in the short term.
Frequently Asked Questions
What is a Bitcoin spot ETF?
A Bitcoin spot ETF is an investment fund focused on directly purchasing Bitcoin on the market, making it easier and safer for investors to access.Why do institutions prefer ETFs over buying Bitcoin directly?
ETFs allow for traditional investment methods, reducing custody risks and the complex procedures associated with wallets and private keys.How does BlackRock hold such a large amount of Bitcoin?
BlackRock's iShares Bitcoin Trust holds over 700,000 BTC, accounting for more than 55% of the Bitcoin in U.S. ETF funds.Will altcoin ETFs potentially be approved this year?
The probability of ETF approval for Solana, XRP, and Litecoin is very high, possibly up to 95%, expanding investment opportunities for institutions.How are companies integrating Bitcoin into their treasury?
Many large companies like Metaplanet and Remixpoint have purchased hundreds of millions of USD in Bitcoin to hold as treasury assets.
Source: https://tintucbitcoin.com/bitcoin-etf-vuot-moc-50-ty-usd/
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