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Bitcoin (BTC-USD) has broken $50,000 for the first time since late 2021 as spot BTC ETFs continue to see strong inflows amid signs that institutional interest in the cryptocurrency market has picked up again.
The top cryptocurrency rose by 4.1% to $50,083 as from 4:07 a.m. ET, while Ether (ETH-USD) traded 6.9% higher at $2,662. It should be noted that Bitcoin (BTC USD) is up about 18% this year, but is still well below the peak of $69,000 it reached in November 2021.
“Even though FTX, Luna, Celsius and BlockFi collapsed in 2022, nothing changed in the fundamentals of Bitcoin (BTC-USD),” said Michaël van de Poppe, CEO of MN Trading Consultancy. “It is hard money that is recognized by large institutions. The robust recovery over the last 24 months shows this.”
According to CoinShares, spot BTC ETFs saw net inflows of $1.1 billion last week, bringing inflows since launching on January 11 to $2.8 billion. Meanwhile, outflows from the Grayscale Bitcoin Trust (GBTC) continued to slow.
With the success of spot BTC ETFs, Wall Street firms are increasingly applying for spot Ethereum ETFs, most recently Franklin Templeton. Other applicants include Van Eck, ARK, BlackRock, Fidelity and Grayscale.
While the industry expects the SEC to approve ETH spot ETFs by May, JP Morgan previously said there was no more than a 50% chance of this happening.
Meanwhile, billionaire Peter Thiel's venture capital firm Founders Fund invested $200 million last year to acquire Bitcoin (BTC-USD) and Ether (ETH-USD), Reuters reported, in a sign of renewed institutional interest. The company began buying BTC aggressively in 2014 but sold its holdings before the crypto market crash in 2022.
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