Bitcoin's value poised for significant surge as exchange-traded fund investments climb to $1.3 billion
In a fascinating turn of events, Bitcoin continues to dominate the financial landscape, defying convention as it hovers steadily above the $105,000 mark on a Saturday. Investors are clearly taking advantage of the latest dip, with exchange-traded funds data suggesting hefty purchases on Friday.
Bitcoin's resilience is undeniable, having surged 2.4% from its Friday low-point and soaring 5% above this month's lowest point. Spot Bitcoin ETFs have witnessed inflows of a whopping $301 million on Friday, despite Bitcoin's price dipping close to $100,000. This surge in weekly inflows has reached $1.3 billion, marking a significant shift since the previous week's $128 million in outflows.
BlackRock's iShares Bitcoin ETF, symbolized as IBIT, has seen daily inflows of $238 million on Friday, accumulating a staggering $49.7 billion in total. With $70 billion in assets under management, IBIT is rapidly gaining traction, making it the fastest-growing ETF in the finance sector.
Meanwhile, the SPDR Gold Trust, first launched in 2004, has amassed $103 billion in assets. Given the current trend, it's not unlikely that IBIT will soon surpass the SPDR Gold Trust, becoming the largest ETF in the next few months or by 2026. Fidelity's FBTC ETF and Bitwise's BITB have also garnered over $11 billion and $2 billion in inflows respectively since inception.
One factor contributing to Wall Street investors' growing interest in Bitcoin is its strong fundamental structure. BlackRock's data shows that Bitcoin consistently outperforms the stock market following major geopolitical events such as the recent Iran and Israel conflicts.
Interestingly, Bitcoin's supply on exchanges has been on a steady decline, falling from 1.5 million in January to 1.1 million currently. This decreasing supply combined with reduced overall supply could drive the price upward in the long term.
Looking at the long-term chart, Bitcoin seems poised for a multi-year breakout. The monthly chart indicates a strong Bitcoin price breakout imminent, with Bitcoin forming a rounded bottom between Dec. 17 and March 2021. Since November 2021, Bitcoin has been forging another rounded bottom.
Ark Invest forecasts Bitcoin soaring to $2.4 million by 2030, while Michael Saylor anticipates a mid-term forecast of $1 million. However, short-term factors such as geopolitical tensions can invariably impact Bitcoin's price, as evidenced by the recent dip due to escalating Israel-Iran conflicts. Nonetheless, the long-term outlook for Bitcoin remains promising.
- The surge in Bitcoin's price has attracted investors to purchase Bitcoin-based exchange-traded funds (ETFs), with inflows of $301 million on Friday alone, as per exchange-traded funds data.
- The BlackRock's iShares Bitcoin ETF (IBIT) has seen significant growth, with daily inflows of $238 million on Friday and a total of $49.7 billion in assets under management.
- Despite the SPDR Gold Trust, launched in 2004, amassing $103 billion in assets, the rapid growth of IBIT suggests it could overtake the SPDR Gold Trust and become the largest ETF in the next few months or by 2026.
- Fidelity's FBTC ETF and Bitwise's BITB have also garnered over $11 billion and $2 billion in inflows respectively since inception, indicating a growing interest in other cryptocurrencies or altcoins as well.
- The resilience of Bitcoin is not limited to its price, as its strong fundamental structure has consistently outperformed the stock market following major geopolitical events, making it a promising investment in the rapidly evolving technology sector.
