Bitcoin ETFs Draw $2.56 Billion as Crypto Rally Gains Momentum
Bitcoin ETFs have continued to attract new investors worth billions of dollars, demonstrating that their upward trend is sustainable. The top cryptocurrency has seen its price rise thanks to the $2.56 billion invested by American investors since last Monday, according to data. Notable corporations like Fidelity, BlackRock, and Morgan Stanley have experienced an influx of about $652 million in fresh money this week. The price of bitcoin increased by around 25% in the past week, and it was recently trading at $78,302. There was a high of $81,160 for the coin on Monday.
Bitcoin’s rise comes after two uninspiring months, when it mostly traded below $65,000. The news that the Treasury intends to increase the size of its liquidity-support buyback operations by at least 100% has been good for the cryptocurrency. The dollar took a hit after last week’s news, but non-yielding assets like gold and Bitcoin saw rises. On X Wednesday, analyst Eric Balchunas pointed out that debasement trade has come back. The debasement trade has taken precedence over artificial intelligence, he said, adding that “Gold and Bitcoin ETFs have combined for over $7 billion in flows in the past week, marking a significant record for a 5-day period as the debasement trade takes precedence over AI,” he stated.
When investors buy assets to hedge against currency depreciation, they are engaging in what is known as the debasement trade. Since there is a restricted supply of Bitcoin and precious metals, these investments have done well in the market. Although the investment approach was all the rage last year, talk about it eventually died down as people started putting their money into AI-related stocks. The current state of U.S. borrowing, dollar depreciation, and actions to control long-term yields are causing investors to be anxious.
With inflows of roughly $2 billion, Bitcoin ETFs had their most eventful week since October last week. There has been an uptick in trade activity due to positive regulatory developments announced by the White House. Last week, President Trump met with cryptocurrency industry leaders and subsequently asked senators to finish the crypto Clarity Act, which has been in the works for a long time.
