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US Bitcoin ETFs attract record inflows


In the United States, Exchange-Traded Funds (ETFs) that allocate investments primarily into Bitcoin have recorded an unprecedented influx for the 18th consecutive day, propelling the premier digital currency towards surpassing its highest price ever.

Bloomberg's gathered data indicates that this collection of approximately a dozen offerings amassed $15.6 billion in net inflows up to Thursday from their inception on January 11, elevating their combined holdings to $62.3 billion.

Notable entities such as BlackRock Inc. and Fidelity Investments are behind some of the most triumphant introductions in the ETF sector to date, as per Bloomberg's findings. The report further suggests a realignment in the cryptocurrency sphere’s focal point, transitioning from Asia to the United States.

The surging demand for ETFs, alongside the speculative anticipation of forthcoming reductions in Federal Reserve interest rates, are seen as key drivers that may propel Bitcoin to eclipse its previous peak of $73,798 before the conclusion of June.

Sean Farrell, who leads the digital asset strategy department at Fundstrat Global Advisors LLC, highlighted the “significant flows into spot Bitcoin ETFs" and expressed that the broader economic backdrop remains conducive for cryptocurrencies. Farrell pointed to modest econoomic expansion without dipping into recession and continued evidence of declining inflation as supportive factors.

Amidst this outlook, BlackRock’s iShares Bitcoin Trust has ascended to become the most substantial fund dedicated to the cryptocurrency, with assets of $21.4 billion, outstripping the $20.1 billion held by Grayscale Investments LLC’s Bitcoin trust. The third-largest, holding $12.3 billion, is the Fidelity Wise Origin Bitcoin Fund.

After a pivotal court decision in 2023, the U.S. Securities and Exchange Commission (SEC) began to permit spot-Bitcoin ETFs from January, and in a further unexpected move in May, approved ETFs for Ethereum, the crypto market's second giant. Despite this progress, under the stewardship of Chair Gary Gensler, the SEC maintains a stance of scrutiny toward digital assets for purported regulatory infractions. Nonetheless, there's an accelerating push in Congress towards crafting crypto-specific legislation, which is also seeing increasing backing from the Senate and federal courts, aiming to limit the SEC’s encroachments into traditional financial and banking domains.

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The materials found on the Cryptonica website shall not be taken as individual investment recommendations. The financial instruments or operations mentioned therein may not align with your investment profile or objectives. We assume no responsibility for any missing facts or inaccurate information in the texts. Cryptocurrencies are financial assets with high risk and volatility. Therefore, it is crucial that you conduct your own research on financial instruments and make independent decisions. Before engaging in any actions related to cryptocurrency, you shall study, understand, and comply with the laws applicable in your region and country.

Gary Gensler

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