Due to record-breaking weekly inflows into cryptocurrency funds, Bitcoin has risen to fresh all-time highs above $72,000. As of March 8, $2.7 billion have been poured into cryptocurrency investment products, according to CoinShares analyst James Butterfill. Year-to-date inflows had reached $10.3 billion, almost exactly matching the sum for 2021.
The majority of these inflows were driven by Bitcoin, which has received $2.6 billion year to far and accounts for 14% of all cryptocurrency assets under management globally.
The increase in investment in recently authorized spot Bitcoin exchange-traded funds (ETFs) in the United States, which have transacted over $110 billion since their launch on January 11, may be partially responsible for the spike in inflows.
Over $2 billion is currently held in assets by five U.S. spot Bitcoin ETFs, the newest of which is Bitwise's BITB fund. Analysts are bullish about the price of Bitcoin going forward. Tony Sycamore, an IG market analyst, believes that institutionalization and governmental approval will bring the price of the cryptocurrency beyond $80,000 in the upcoming months.
The recent upswing was also accompanied by the London Stock Exchange's adoption of Ether and Bitcoin ETNs, as well as a growing degree of approval from the UK Financial Conduct Authority for new financial instruments featuring a crypto component.
According to Mikkel Morch, the creator of the digital asset investment fund ARK36, these legislative changes, together with the impending halving event and the ongoing rise in inflows into Bitcoin ETFs, portend a new phase of cryptocurrency growth and public acceptance.
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