Since the US securities regulator approved spot
Bitcoin ETFs, the funds have posted record performance in the recent past.
Investor enthusiasm for such funds reached an unprecedented level, with net
flows soaring more than 100%.
According to a report by Coindesk, the net inflows for
US-listed spot Bitcoin ETFs surged 175% year-over-year in the first three weeks
of the year. The boost came despite the ongoing volatility in the crypto
market.
Bitcoin ETF Inflows Outpace 2024
US-listed Bitcoin ETFs have reportedly accumulated
an impressive $40.6 billion, highlighting their status as one of the most
successful ETF launches in history.
The sharp rise in inflows signals growing
institutional interest, even as Bitcoin itself struggles to maintain key price
levels. At the time of publication, the top digital asset was trading at
$97,807, representing a 2% and 4% decline in the past day and week,
respectively.
Notably, Bitcoin ETFs in the US experienced net
inflows of $4.4 billion, compared to just $1.6 billion during the same period
in 2024. This remarkable increase highlighted the growing demand for regulated
Bitcoin investment vehicles, particularly among institutional investors.
BlackRock’s iShares Bitcoin Trust (IBIT) has emerged
as a dominant player, recording $40.7 billion in net inflows. However, the
overall total for all 11 Bitcoin ETFs reportedly stands at $40.6 billion.
According to CoinMaketCap data, Bitcoin’s price is struggling below $100K amid market uncertainty. Despite record inflows into ETFs, Bitcoin has failed to sustain its position above the
psychological $100,000 level.
Bitcoin’s dominance in the crypto market has climbed
to 60. While Bitcoin has declined 4% over the past week, major altcoins have
suffered even steeper losses. Ethereum is down 11%, XRP has plunged 19%, Solana
dropped 13%, and Dogecoin tumbled nearly 20%.
Bitcoin Dominates as Altcoins Lag Behind
However, a few altcoins have defied the broader trend.
The TRUMP token, associated with the US President, surged more than 5% in a
day. Also among the top gainers on CoinMarketCap data are Gala (GALA) and
Litecoin (LTC).
Generally, investors appear confident in the long-term
prospects of regulated crypto investment products. Meanwhile, the broader
market remains cautious, awaiting further clarity on US regulatory policies.
Based on Bitcoin’s fundamental and technical analysis in the context of the broader digital asset space, the token is poised for further upward growth. However, whether Bitcoin can reclaim $100,000 will depend on macroeconomic factors and policy developments in the months
ahead.
This article was written by Jared Kirui at www.financemagnates.com.
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