- Bitcoin ETFs have accounted for 75% of new Bitcoin investments over the past 2 weeks, totaling over $200 million according to data analytics firm CryptoQuant.
- BlackRock’s iShares Bitcoin Trust ETF drove the most inflows, accumulating over $250 million worth of Bitcoin.
- Analysts say ETF demand is fueling Bitcoin’s rally above $50,000, marking a major milestone for institutional adoption in crypto.
Bitcoin has been on a tear lately, surging past $50,000 to hit its highest level in two years. A new report suggests exchange-traded funds (ETFs) are fueling this rally.
Bitcoin ETFs Account for 75% of New Investments
According to data analytics firm CryptoQuant, an estimated 75% of new Bitcoin investments over the past two weeks have come from the 10 spot Bitcoin ETFs approved in the U.S. on January 11.
The report states that “over 75% of new investment into Bitcoin are coming from these ETFs.” Moreover, “investment from these ETFs has increased to 2% of the total historical investment in Bitcoin in just one month.”
BlackRock’s Bitcoin Trust Leads Inflows
BlackRock’s iShares Bitcoin Trust ETF was responsible for the lion’s share of the inflows, amassing 4,843 Bitcoin worth $253 million.
In total, the spot Bitcoin ETFs have accumulated 4,115 Bitcoin worth about $215 million. CryptoQuant expects Bitcoin to hit $56,000 next.
ETFs Fuel Bitcoin’s Rally to $50,000
According to CryptoQuant’s head of research, ETF demand was the main driver behind Bitcoin surging past $50,000: “Bitcoin has crossed the $50,000 mark mostly on the back of fresh demand from ETFs.”
The launch of spot Bitcoin ETFs marks a major milestone for institutional adoption. As one analyst noted, “The entirety of spot Bitcoin ETF products now holds a cumulative value of more than $10 billion.”
Conclusion
The approval of Bitcoin ETFs in the U.S. has unleashed a wave of institutional investment. By making it easier for mainstream investors to gain exposure to Bitcoin, ETFs are helping push the cryptocurrency to new highs. If current trends continue, Bitcoin ETFs will become a powerful driver of crypto adoption.
