The price of Bitcoin (BTC) has skyrocketed, reaching new record highs above $72,000. This surge comes after a week of unprecedented inflows into crypto exchange-traded products (ETPs). CoinShares analyst James Butterfill revealed that crypto investment products saw an astonishing $2.7 billion in inflows as of March 8. In total, crypto ETPs have generated $10.3 billion in inflows this year, almost matching the $10.6 billion inflows seen in all of 2021.
Bitcoin accounted for the majority of these inflows, with $2.6 billion in inflows year-to-date. Currently, Bitcoin represents 14% of the global assets under management (AUM) in the crypto market. On March 11, the price of Bitcoin reached a new all-time high of $72,900, although it has since stabilized around $72,000, showing a 6.9% increase over the past week and a 29% increase over the past month.
The increase in inflows into crypto ETPs can be attributed to the growing investment in recently approved spot Bitcoin exchange-traded funds (ETFs) in the United States. These ETFs have already traded over $110 billion since their launch on January 11. Bloomberg ETF analyst James Seyffart noted that there are now a total of five U.S. spot Bitcoin ETFs with over $2 billion in assets under management (AUM), with Bitwise’s BITB fund being the latest addition.
According to IG market analyst Tony Sycamore, Bitcoin’s current rally could potentially push its price towards $80,000 in the coming months. He also emphasized that the crypto asset would have strong support even in the event of any dips. Mikkel Mørch, founder of ARK36, a digital asset investment fund, highlighted that Bitcoin’s new all-time high coincided with the London Stock Exchange accepting Bitcoin and Ether exchange-traded notes, as well as the increased willingness of the UK Financial Conduct Authority to accept new crypto-related financial products.
Mørch sees these developments, along with the growing regulatory acceptance of crypto assets globally, the upcoming halving event, and the continuous growth of Bitcoin ETF inflows, as signaling a “new era of growth and mainstream adoption for cryptocurrencies.” He believes that these factors will sustain the rally and contribute to a more robust and diverse investment landscape for digital assets.