Bitcoin ETF Breaks Records: BlackRock’s IBIT Joins Elite ‘$10 Billion Club’ Amidst Soaring Demand
01 März 2024 - 10:30PM
NEWSBTC
The demand for spot Bitcoin exchange-traded funds (ETFs) has surged
since their recent approval on January 10, with BlackRock’s IBIT
Bitcoin ETF leading the way. This ETF has reached impressive
milestones in less than two months, attracting significant investor
interest and opening doors for various market participants to
invest in the largest cryptocurrency directly. As
institutional and retail investors flock to these new investment
vehicles, market experts predict a bullish trend and anticipate a
potential price surge. Bitcoin ETF Frenzy According to Bloomberg
ETF expert Eric Balchunas, BlackRock’s IBIT Bitcoin ETF has quickly
joined the esteemed “$10 billion club,” reaching the milestone
faster than any other ETF, including Grayscale’s Bitcoin Trust
(GBTC), noting that only 152 ETFs out of 3,400 have crossed the
threshold. Balchunas notes that IBIT’s ascent to this club was
primarily driven by significant inflows, which accounted for 78% of
its assets under management (AUM). This reflects the growing
appetite for Bitcoin exposure among investors seeking diversified
and regulated investment options. In particular, the current
trajectory of the ETF market paints a picture of resilience and
bullish sentiment in the market. Equity ETF flows, and leveraged
trading levels are positive indicators, although they have not yet
reached the euphoria seen in 2021, Balchunas notes. However,
Bloomberg’s new BI ETF Greed/Fear Indicator, which incorporates
various inputs, highlights the optimistic outlook shared by ETF
investors, as seen in the chart below. Related Reading: Fetch.AI
(FET) Surges 21%: Why This Rally Is Just Getting Started On this
matter, crypto analyst “On-Chain College” went to social media X
(formerly Twitter) to emphasize the significant demand for Bitcoin
as evidenced by its rapid departure from exchanges. In its
analysis, On-Chain College highlights that Bitcoin ETFs buy
approximately ten times the daily amount of BTC mined. At the same
time, the upcoming halving event will further reduce the mining
supply. The analyst predicts when demand will exceed available
supply, leading to potential upward price pressure. Highest Monthly
Close Since 2021 Bitcoin’s recent market performance has caught the
attention of wealth manager Caleb Franzen, who highlights the
significance of the highest monthly close since October 2021.
Franzen further emphasizes the bullish momentum by pointing out
that the 36-month Williams%R Oscillator has closed above the
overbought level for only the fourth time in history. Historical
data reveals impressive returns following such signals, indicating
the potential for substantial gains in the coming months.
Additionally, Franzen notes the changing dynamics of the market,
with increased institutional participation and the ease of retail
onboarding through ETFs. Franzen presents a compelling case for the
bullish nature of overbought signals, urging market participants to
view them as momentum indicators rather than signals to fade.
Previous instances of overbought signals have resulted in
significant Bitcoin price appreciation: February 2013: +3,900% in 9
months December 2016: +1,900% in 12 months November 2020: +260% in
12 months While acknowledging diminishing returns in each cycle,
Franzen highlights the unprecedented level of institutional
participation and the ease of retail access through ETFs.
Related Reading: XRP Poised for Growth: Analyst Forecast Bullish
Movement Ahead Even if Bitcoin were to match the +260% gain from
the November 2020 signal, it would reach a price of $180,000,
surpassing Franzen’s minimum cycle target of $175,000.
Ultimately, Franzen notes that bull markets are typically
characterized by a rising ETHBTC ratio and a falling BTC.D (Bitcoin
dominance). While these characteristics have yet to manifest fully,
Franzen suggests that a multi-quarter rally in the broader
cryptocurrency market may be on the horizon. Featured image from
Shutterstock, chart from TradingView.com
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