Bitcoin (BTC-USD) rose above $47,000 on Friday afternoon for the first time since the launch of spot ETFs after the U.S. Securities and Exchange Commission approved 11 exchange-traded funds last month. Jared Blikre, Markets Reporter at Yahoo Finance, breaks down the details and provides insight into the reasons behind the rally.
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Editor's Note: This article was written by Angel Smith
Video transcript
JULIE HYMAN: Jared Blikre here with the trade. We're talking about Bitcoin two days in a row, Jared.
JARED BLIKRE: How about that? How special have we become? Bitcoin on the way to 50,000. Not quite there yet. I still have a few thousand left. Here is the three-month chart. I show this because Bitcoin has been stuck in a trading range for most of it since early December, even when it broke out here. And that was the “sell the news” spot moment for the Bitcoin ETF. It was very short and only lasted a few days. Similar to this collapse, it only lasted a few days. And here we are.
What I like about this chart is that the price appears to be very comfortable in this area, which was previously quickly rejected. As we continue to rise here and approach the 50,000 mark, I want to see whether this price level is accepted or rejected. And if it's rejected, you get one of those big tails or wicks or shadows, as the terminology goes. But why this level? That's because we have a price reminder from 2022 here. If we are able to reach 50,000, guess what? That's 55,000. So here's step by step.
And I also want to take this opportunity to take a look at some of the flows that we've seen in some of these spot Bitcoin ETFs. Was really interesting, 10 in total. I have the top 5 in terms of volume, both up and down. What really stands out here is the Grayscale Bitcoin Trust. This resulted in the loss of over $6 billion in inflows. It has by far the most assets. It was founded in 2013. There is still a 1.5% administration fee. However, many of these funds went to competitors.
IBIT – that is the iShares offering – with inflows worth $3.5 billion. And then Fidelity is pretty close on his heels. So we'll have to wait and see how this all plays out, but many of these issuers are really going all out on Bitcoin ETFs locally. I would like to mention that the iShares offering is among the top 10 Bitcoin ETFs in terms of inflows this year. That is significant.
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