An injection of USD 600 million in ETF catapulted Bitcoin to new records
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Cash ETFs directly impact the price of the underlying asset.
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To this is added the direct investment in Bitcoin, which also generated bullish pressure.
The Bitcoin market (BTC) lived a historic day on May 21, when a massive capital injection in funds quoted in the stock market (ETF) of Bitcoin in cash in the United States promoted the price of the currency to a new historical maxim above 110,000 dollars.
Yesterday, Bitcoin ETFs in the United States They registered net tickets of USD 609 millionextending its positive streak for the sixth consecutive day, as can be seen in the following graph provided by Coinglass.
This capital flow contributed directly to the increase in the price of Bitcoin, which exceeded its previous historical maximum of USD 109,300 and reached the USD 111,000.
The Ishares Bitcoin Trust (ibit), managed by Blackrock, led the tickets with USD 530.6 millionfollowed by the Fidelity Wise Origin Bitcoin Fund (FBTC), the Bitwise Bitcoin ETF (Bitb) and the Groyscale Bitcoin Mini Trust ETF (BTC), each with flows greater than USD 20 million.
So far in May, These funds have accumulated net tickets for USD 4,240 million, raising the total accumulated to USD 43,380 million. This performance reflects a growing interest of institutional investors in the digital currency.
The direct impact of Bitcoin ETFs
Cash ETFs have a direct effect on the price of Bitcoin, since they are backed by that underlying asset. The managing companies of these funds must acquire and maintain Bitcoin in their treasury to support the actions issued.
This process generates a tangible demand in the market, reducing the available Bitcoin offer and exerting bullish pressure on its price.
Eric Balchunas, ETF specialist at Bloomberg Intelligence, highlighted the “constant purchase frenzy” promoted by these movements, noting that the Blackrock Ibit was close to registering its second largest daily volume.
In addition, Balchunas stressed The meteoric rise of the Ibit, which with accumulated tickets of USD 9,000 million was positioned among the five best selling ETFs of the yearsurpassing the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL), a background centered in short-term treasure bonds.
“This is crazy, since only one month ago it took place 47,” said the analyst, highlighting the growth of USD 6.5 billion in just one month.
The corporate and governmental impulse
Beyond the ETF, Bitcoin increase also responds to growing adoption in the corporate and governmental field.
In May, companies such as Horizon Kinetics, Atai Life Sciences, Investview and Coinsilium announced the incorporation of Bitcoin (directly, not ETF) to their treasury, Following Strategy’s example (formerly Microstrategy), which has 576,230 BTCBitcoin’s greatest possession between public contribution companies, as reported by cryptootics. Also, companies such as Metaplenet and Strategy themselves have increased their BTC reserves.
In the governmental field, interest in Bitcoin also grows. Texas advances in a bill to include BTC in its state reserves, while El Salvador, a pioneer in the adoption of Bitcoin as a legal tender, reports unrealized profits from USD 386 million thanks to its accumulation strategy.
For its part, the United States government formalized in March A strategic bitcoin reserve and other cryptocurrenciesconsolidating the relevance of the asset in the public sphere.
With a price stabilized above USD 110,000 and a volume of operations that reflects a sustained interest, Bitcoin continues to redefine its role in global markets.
