Bitcoin ETFs hit new record for liquidity in the US
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Bitcoin ETFs have once again become the center of attention, registering a new record of net inflows. With this, the results point to a new growth in demand for these assets.
BTC ETFs gained prominence in the news at the beginning of 2024, when approval for commercialization in the United States was finally granted. Due to the great appeal and anticipation for this type of investment, the asset baskets were widely accepted and quickly accumulated a very high revenue. This also caused the price of BTC to rise, which had excellent returns until April of this year.
After that, the demand for ETFs decreased. As a result, some experts believed that the asset could disappear. But now, with the return of positive numbers, new projections are being made. Therefore, analysts estimate that ETFs may once again return to the spotlight.
ETFs see record inflows in July 2024
In a rather intriguing comeback, Bitcoin ETFs hit a new record this month. The asset class has accumulated over 17 billion USD in net inflows, showing that it can still move the market. The one responsible for the largest number of inflows is BlackRock’s IBIT, followed by Fidelity’s FBTC.
Other ETFs also performed well. This is the case of Grayscale’s GBTC, which competed for the public’s preference on the day with the biggest gains. The main signs of appreciation occurred on July 17th. In total, eleven ETFs recorded good numbers.
Trading volume also performed significantly on the date in question. US BTC spot funds reached the 1.79 billion USD mark. This is a good number, even considering that it did not surpass the record value. In March, when trading volume was highest, spots moved more than 8 billion USD.
BlackRock focuses on Bitcoin to keep assets in the market
There is no denying that BlackRock is one of the main companies responsible for approving cryptocurrency ETFs. For years, the company has been filing applications with the SEC. At the time of approval, several hearings and document filings were held to speed up the approval process. After this phase, the company stands out for its growing acceptance and integration of assets into traditional portfolios.
The company has been successful in increasing the value of its ETFs. Since their launch, the assets have seen a cumulative increase of 20 billion USD in value. This is the largest cumulative increase among recently launched cryptocurrency ETFs.
This also led to a greater boost in the company’s BTC purchases. This is because BlackRock recently announced a BTC acquisition and began to be considered a “whale.” In total, more than 4,004 BTC tokens were purchased, contributing to a 3% growth in the asset’s price.
BlackRock's Bitcoin holdings are back above $20B after acquiring 4,004 BTC and a 3% price rise, making it the world's largest Bitcoin ETF.#blackrock #etf #btcnews #cryptonews #investment #trading #trader #tradinglife #wealthcreation #wealthbuilding #Ethereum #Solana #blockchain… pic.twitter.com/ysJFn0VQUL
— 360 Core Inc. (@360CoreInc) July 17, 2024
ETFs and BTC price dynamics
The price of BTC has been quite unstable throughout the year. January saw the lowest growth, which was soon boosted by the approval of ETFs. As a result, the asset struggled to stay in the 70,000 USD range for much of the time.
BTC halving also played a key role in this dynamic. This is because, during the event, the tokens given as rewards to miners were reduced by half. Thus, due to scarcity, there was great expectation around the possibility of a price increase. However, as this did not happen, there was a reduction in demand for ETFs. This may have been the factor responsible for the retraction scenario.
With ETFs back in the spotlight, Bitcoin is also reacting. Over the past month, the asset has seen a 3.4% increase, indicating signs of a recovery in value. The price of the BTC token is close to 70,000 USD again. Despite a relative drop in the past 24 hours, the token is still selling for over 65,000 USD.
Bitcoin ETF Growth Projections in the Current Scenario
Experts estimate that the second half of the year will be a positive year for cryptocurrencies. This will ensure that investors’ interest in the market returns, and this interest obviously applies to BTC and other digital assets.
With the recent boost given by BTC ETFs, there is a chance that BTC will also return to registering positive and more balanced numbers soon. This is because, since their launch, ETFs have played an important role in the movement of the market in general, especially BTC.
Furthermore, there is great expectation regarding the future of the United States due to the election of the new president. The election year in that country usually brings consequences for the cryptocurrency market as well, and this has already started to have an effect on the market. If Donald Trump wins, there is an expectation of greater growth and support for BTC and other cryptocurrencies, since the businessman is a crypto enthusiast.
However, if the candidate chosen by the Democrats wins, there is a chance of greater obstacles, since the party tends to have a more conservative view regarding the digital market. However, this may also be uncertain due to Joe Biden’s withdrawal of candidacy.
