Bitcoin is on the cusp of achieving its longest winning streak in a year, buoyed by the unprecedented success of US exchange-traded funds (ETFs) dedicated to the cryptocurrency.
As of 9:50 a.m. Monday in Singapore, Bitcoin surged approximately 1% to reach $48,436, poised for its seventh consecutive daily gain, marking the lengthiest winning streak since January 2023, according to data compiled by Bloomberg.
The recent surge in Bitcoin’s price follows the introduction of nine new spot Bitcoin funds in the US on Jan. 11, which collectively attracted over $9 billion in investor inflows. Notably, offerings from financial giants BlackRock Inc. and Fidelity Investments have emerged as the most successful ETF launches based on assets accumulated within a month, Bloomberg Intelligence analysts Eric Balchunas and James Seyffart noted.
Caroline Bowler, CEO of crypto platform BTC Markets Pty, highlighted an uptick in institutional investment in Bitcoin, citing an “increasing movement of institutional money into the asset class” during an interview on Bloomberg Television.
The conversion of the more than decade-old Grayscale Bitcoin Trust into an ETF on the same day as the new funds went live further underscored the growing institutional interest in Bitcoin. While the Grayscale vehicle experienced a substantial outflow of over $6 billion, the pace has slowed. Collectively, the batch of 10 ETFs has attracted a net inflow of $2.8 billion.
Last year, excitement surrounding the ETFs spurred a Bitcoin revival, briefly propelling the token past $49,000 on the day of their launch. However, a subsequent multiday selloff, accompanied by a $10,000 price decline, ensued as investors cashed out profits and monitored the performance of the ETFs. Nevertheless, the ensuing rebound has brought the $50,000 milestone back into view, a level last seen in 2021.
Additionally, optimism surrounding the quadrennial Bitcoin halving scheduled for April is contributing to positive sentiment in the crypto market. The halving event, which reduces the quantity of Bitcoin miners receive for validating transactions, has historically supported prices.
Amidst the ongoing Lunar New Year holidays in Asia, sentiment toward Bitcoin remains favorable, according to analysts at Fundstrat Global Advisors. However, despite the recent surge, Bitcoin still lingers around $20,000 below its all-time high reached during the pandemic-induced bull run in 2021.