Bitcoin’s recent rally, inching closer to its all-time high, is fueled by the surge in demand for US-listed Bitcoin ETFs. With net inflows of $7.35 billion from major fund names like BlackRock Inc. and Fidelity Investments, the cryptocurrency has seen a remarkable 186% increase over the last year. Even significant outflows from Grayscale Bitcoin Trust have not deterred traders, who are eagerly anticipating the cryptocurrency’s price to exceed its previous record of nearly $69,000.
This bullish momentum has also lifted other altcoins like Cardano and Solana, along with meme coins such as Dogecoin and Shiba Inu. The surge in these smaller tokens reflects a pattern reminiscent of the 2021 bull run, where retail traders seek quick profits in volatile assets.
Furthermore, the crypto derivatives market shows a strong bullish sentiment, with CME Group’s Bitcoin and Ether futures nearing record highs in open interest. This increase in outstanding contracts demonstrates a growing interest in crypto exposure and hedging among US institutions.
As the cryptocurrency market continues to experience heightened activity and speculation, the influx of investment in Bitcoin ETFs serves as a significant indicator of evolving investor preferences and market dynamics. The upcoming Bitcoin halving in April, coupled with the current demand surge, points towards a potential tightening of supply and further price appreciation in the near future.
