US based spot Bitcoin $104,673.8 ETF‘s attracted a cumulative net investment of $39.94 billion in just over a year of their launch. According to weekly data, the total net asset value of these funds exceeded 123.1 billion dollars, breaking a record. Especially BlackRock‘s ETF iShares Bitcoin Trust maintained its lead with weekly flows of $1.32 billion. market analysts BitcoinHe points to (BTC) stabilizing above 100 thousand dollars and political developments as the main driving force of this rise.
Why Are Bitcoin ETFs So Attractive?
ETFs received a total of $1.76 billion in inflows in the last seven trading days. cryptocurrency marketHe renewed his trust in him. After BlackRock Fidelity‘s ETF FBTC $202.2 million, Ark and 21Shares‘s ETF ARKB attracted 172.6 million dollars of investment.
Experts attribute the increase in flows to the expansion of Bitcoin’s role in the global economy. Also the 47th President Donald Trump‘s positive statements regarding cryptocurrencies and Elon Musk’s plans to integrate Blockchain technology into the public sector also support market dynamics.
On the other hand, on Friday Nasdaqhas filed for a rule change that would allow an “in-kind” transaction model for the iShares Bitcoin Trust. While in the current system, funds sell BTC and return cash, with the new regulation, investors directly BTC will be able to get it. This move can increase the liquidity of funds by reducing transaction costs. Industry representatives emphasized that if the amendment is approved, the interest of institutional investors may increase further.
How Do Political and Technological Developments Affect the Market?
After Trump took office cryptocurrency An increase in optimism was observed in the market. Trump’s statements defending Blockchain technology and Musk’s goal of reducing costs at the state level encourage investors.
On the other hand, the number of days Bitcoin spent above $ 100 thousand reached an all-time high. Analysts predict that this trend will continue in the coming months and ETFs will reach new investor audiences.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
