ETFs, these trendy financial products, have their ups and downs, but they have clearly managed to carve out a place for themselves in the market. Their variations do not seem to slow down the growing interest they arouse, in particular thanks to the transparency and regulation they provide. Institutional investors, on the other hand, are taking advantage of this opportunity to increase their exposure to assets like Bitcoin and Ethereum, creating major movements in the crypto market.
The influence of ETFs on Bitcoin
American spot ETFs, capable of generating $1.1 billion in inflows in a week, now play a crucial role in the Bitcoin market. Since January 2024, they are at the origin of nearly 4% to 5% of net capital flows entering this market. These financial products, developed by giants like BlackRock and Fidelity, manage assets worth close to $58 billion, representing around 4.6% of the total BTC supply.
As an example, the breakeven point for ETF investors fluctuates between $54,900 and $59,100. That's not all: as the price of Bitcoin approaches these levels, ETF investors are keeping their cool, despite the potential losses they may incur in the short term.
On three occasions since July 2024, Bitcoin came close to or exceeded the $59,000 markwhich revives the hope of a return to profitability for these investors.
- 4.6% of Bitcoin supply held by ETFs;
- $58 billion in assets under management for these financial products;
- ETF breakeven point between $54,900 and $59,100.
Booming institutional demand for ETFs
Behind this excitement, institutional demand for regulated exposure to cryptos via ETFs continues to grow. Players like Goldman Sachs and Morgan Stanley have stepped up their investments in Bitcoin ETFs, thus underlining their conviction in the potential of this asset.
Observers note that bitcoin is now seen as a long-term safe haven, particularly thanks to its recent stability around $62,000.
In parallel, long-term Bitcoin holders continue to hold their positions, even when some are in loss. Their resilience in the face of market fluctuations is reinforced by the rise of ETFs, which offer a new form of regulation and security to large investors.
With almost 900,000 BTC already held by these ETFsthis figure could well reach one million before the end of 2024, which confirms their growing importance in the dynamics of the crypto market.
In 2024, $55 billion was invested in Bitcoin ETFs, proof that interest in these financial products continues to grow.
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