Spot Bitcoin ETFs Emerge as World’s Largest BTC Holder, Propelling BTC Toward $100K
In the realm of cryptocurrency, developments can drastically alter the landscape within a mere span of three weeks. This phenomenon is vividly illustrated by the recent trajectory of the largest spot bitcoin ETFs, namely the iShares Bitcoin Trust (IBIT) and the Fidelity Wise Origin Bitcoin Fund (FBTC). Since hitting a post-launch price low on January 22, these ETFs have surged by almost 30%, closely shadowing bitcoin’s remarkable surge past the $50,000 mark in Monday’s trading—a level that had remained unbreached for over two years.
The Bitwise Crypto Industry Innovators ETF (BITQ), serving as a proxy exchange-traded fund for crypto equities, has seen a notable 35% increase. W, while the Valkyrie Bitcoin Miners ETF (WGMI) has soared by an impressive 50% within the same timeframe. This resurgence in optimism and forward momentum for spot bitcoin ETFs gained traction last week. Coinciding with BTC’s price surpassing the $45,000 threshold for the first time since January 12, the day after these new bitcoin funds commenced trading.
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Bitcoin prices to $112,000 in 2024
Anticipation now mounts among investors for bitcoin to reach the $100,000 milestone. Continuation of the current trend of spot bitcoin ETF inflows could potentially propel Bitcoin prices to $112,000 in 2024. As per data from CryptoQuant, an on-chain data provider. The company’s CEO, Ki Young Ju, suggested that even in a “worst-case” scenario, bitcoin’s value could climb to at least $55,000. Representing a 10% increase from Monday’s trading price.
Spot bitcoin ETFs have garnered over $9 billion in inflows as of February 9. CryptoQuant’s metrics indicate that sustaining an inflow trend at $9.5 billion per month might push bitcoin’s peak price to a range of $104k to $112k. Mark Connors, head of research at Canadian crypto asset manager 3iQ. Highlighted the growing interest in spot BTC ETFs among speculators and hedge funds. He noted that this interest has surged, particularly among those who had previously “bought GBTC at a discount. Sold spot BTC against it,” speculating that these traders have likely exited this trade.
Connors also pointed out that major players like Bitwise, BlackRock, Fidelity, and Ark, among others, have identified. Capitalized on the demand for spot BTC ETFs, surpassing all expectations. Moreover, he suggested that increasing geopolitical unrest globally and other macroeconomic issues might also be fueling interest in bitcoin. Its related products as a “safer haven,” akin to the trend seen in March 2023 during a series of regional bank failures.
Bitcoin Held by business Intelligence
As of the same date, spot bitcoin ETFs collectively held 192,000 in bitcoin. Surpassing the 190,000 bitcoin held by business intelligence provider MicroStrategy. Making them the world’s largest bitcoin holder. Despite the potential concerns associated with large-scale ownership by entities like MicroStrategy. BlackRock, and Fidelity, even with the addition of GBTC’s tokens, the collective ownership represents only 4% of the broader Bitcoin network.
The rapid evolution of spot bitcoin ETFs into the world’s largest bitcoin holder underscores the profound impact these ETFs are having on the cryptocurrency landscape. Their growing prominence not only reflects a surge in investor confidence and interest but also signals a potential paradigm shift in the perception and adoption of cryptocurrencies in the broader financial ecosystem.
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