Bitcoin hit its fourth all-time high in six days, buoyed by record inflows into U.S. exchange-traded funds tied to the cryptocurrency.
The world's largest cryptocurrency hit an all-time high of $73,664 on Wednesday, but has pared back slightly to trade around $73,180 as of 7:50 a.m. in New York. Meanwhile, daily net inflows into U.S. spot Bitcoin ETFs exceeded $1 billion on Tuesday, according to data compiled by Bloomberg, with BlackRock's IBIT posting its own daily inflows of $849 million. A record was set.
“The reasons behind the rise are very clear: demand for physically backed ETFs is surging against the backdrop of low market depth,” said Manuel, digital asset analyst at Swiss private bank Julius Baer.・Mr. Villegas said. The overall circulating supply of the token is starting to decline as issuers are hoarding large amounts of Bitcoin to back their ETFs.
advertisement
Continue reading below
Villegas said the weekly issuance of Bitcoin is about 6,300 tokens, which is “absolutely dwarfed” by the demand for tokens in ETFs over the past few weeks, the latter being about 40,000 tokens.
Other cryptocurrencies have similarly risen due to renewed interest in this asset class. Ether rose as much as 3.3% on Wednesday, hitting an all-time high of $4,092 hit a day earlier.
© 2024 Bloomberg