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US Spot Bitcoin ETFs Garner 75% of Fresh Bitcoin Investments, Study Reveals

Spot Bitcoin ETFs Propel Over 75% of New Investments in US Market, Surpassing Historical Records

Feb 15, 2024
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Cryptocurrency market sees surge as spot Bitcoin ETFs drive influx of funds, fueling market optimism and pushing Bitcoin's value beyond $52,000 mark.

The approval of ten spot Bitcoin exchange-traded funds (ETFs) on January 11 has sparked a surge in Bitcoin investment in the United States, with approximately 75% of fresh capital flowing through these channels. Excluding Grayscale's Bitcoin Trust (GBTC) ETF, a report by CryptoQuant reveals that over the past fortnight, these ETFs have been responsible for the lion's share of new Bitcoin investments.

According to the report, these ETFs have rapidly gained traction, now constituting 2% of the total historical Bitcoin investment within just a month, as measured by realized market capitalization. The burgeoning interest in Bitcoin ETFs has also been a significant driver behind Bitcoin's recent price rally, crossing the $50,000 mark and reaching a two-year high of $51,000 on February 14.

Data from Farside Investors indicates that spot Bitcoin ETFs have amassed a substantial portion of Bitcoin, totaling 4,115 Bitcoin valued at approximately $215 million. Among these ETFs, BlackRock's iShares Bitcoin Trust ETF leads with 4,843 Bitcoin, valued at $253 million.

Looking ahead, analysts predict further upward momentum for Bitcoin, with a target price of $56,000 on the horizon. Despite this optimism, resistance around the $52,000 mark looms large, attributed in part to significant sell orders on Bitfinex, as noted by on-chain analyst Cole Garner.

The meteoric rise in Bitcoin investment through spot Bitcoin ETFs signals a new era of institutional adoption within the cryptocurrency ecosystem, with experts suggesting that this trend may continue to shape market dynamics in the foreseeable future.

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