Bitcoin tapped a new high of $50k, a feat achieved in over 2 years, eroding all losses suffered during the ETF craze. Since last week, BTC has oscillated between $43k and $48k as GBTC outflows sparked a fear of sell-offs. However, with the drop in GBTC share prices and the surge amongst its peers like ARK 21Shares BTC ETF [ARKB], with Fidelity’s FBTC closely trailing behind, the net flows of BTC ETFs have posted healthy growth.
In fact, institutions continue to pump more funds, as indicated by the gradual surge in open interest in BTC perpetual futures since last week. Data obtained from leading data provider Kaiko showed that BTC OI based on USD valuation exceeded $11 billion for the first time since December 2021. A rise in OI suggests a rise in speculative interest.
On the contrary, Kaiko noted that while BTC’s spot volume has multiplied exponentially, it could not replicate its last week’s performance of $20 billion. With a meager $10 billion, BTC ETF trading volume has dipped, coinciding with prices stabilizing at $48k. According to Kaiko, “the rally needs more support.”
Bitcoin Now Top 10 Largest Asset
Overall, Bitcoin continues to be a major alternative source for investments. Experts have noted the similar outpouring into BTC funds to that of the simultaneous outflow from gold ETFs. Popular crypto analyst Layergg also doubled down on this shift, noting,
Bitcoin vs. Gold: Bitcoin ETF flows after the first 14 trading days: $1.7 billion; Gold ETF flows after the first 14 trading days: $1.3 billion. We are seeing a shift in interest from gold ETFs to BTC ETFs on TradFi.
Even though the BTC market cap has tapered down owing to the recent market dip, the token continues to rule the roost. With a market cap of $980 billion, the world’s dominant crypto, Bitcoin, has secured a position among the top 10 largest assets in the world. It is hoped that, with time, BTC will soon take over other tech giants such as Microsoft, Google, and Amazon. As reported by TronWeekly, “BTC was the only crypto asset that made it to the coveted list, reflective of its impact on the financial market footprint.”
