Recent data showcases a tremendous accumulation of Bitcoin by exchange-traded funds (ETFs). With iShares by BlackRock (IBIT) at the forefront, holding nearly 116,000 BTC, and Fidelity\'s Bitcoin ETF (FBTC) managing over 83,000 BTC, the market is radiating confidence.
In < 10 seconds, you can watch the accumulation of 260,000+ bitcoin…
Only *5 weeks* of trading since spot bitcoin ETFs went live.
“No demand.”
via @apollosats pic.twitter.com/xepu2v9Het
— Nate Geraci (@NateGeraci) February 18, 2024
This comes at a time when Bitcoin ETFs have only been trading for five weeks, dispelling any notions of a lack of demand, according to prominent analyst Nate Geraci.
ETF leaders
IShares by BlackRock (IBIT) and Fidelity\'s Bitcoin ETF (FBTC) are leading a historic surge in Bitcoin holdings among ETFs. IBIT\'s holdings at the top are emblematic of the increasing traditional financial institution\'s interest in Bitcoin as an investment.
Notably, the rapid rise in Bitcoin ETF holdings comes at a time when the market is still in its nascent stages of adopting such financial products.
A recent influx of funds into Bitcoin ETFs shows the burgeoning confidence in the cryptocurrency sector.
Grayscale has reduced its BTC position, but iShares and Fidelity have substantially increased their stakes. This trend is a strong indicator of cryptocurrency\'s growing allure to traditional investors.
Main bullish catalyst
The continuous inflow into Bitcoin ETFs, as noted by on-chain data providers, could have a significant impact on Bitcoin\'s price trajectory.
Market analysts from CryptoQuant predict that if the current buying pressure continues, Bitcoin prices could soar to new heights, potentially reaching $112,000 within the year. Even the least optimistic scenarios suggest a substantial increase to at least $55,000, indicating a bullish market outlook.
The rise of Bitcoin ETFs is not merely a cryptocurrency phenomenon but is also leaving a mark on traditional investment metrics. In a remarkable feat, the net cumulative flows into the leading Bitcoin ETFs have doubled to over $3 billion in just three days, a milestone that took gold ETFs nearly two years to achieve.