After a considerable drop in the market, the undisputed leader has returned to the $100,000 mark. We find BTC at the price of $102,912 at the time of writing. The cryptocurrency market has rallied nicely, which means there is considerable buying pressure, as well as greater inflows from ETFs, which are represented by an imposing $867 million over last week, although $882 million is in net deposits.
While Bitcoin has maintained its price over the past 24 hours, we can make mention about the performance it has had last week, having a great volatility that has allowed its price to rise by 10.9%. If we go back to the beginning of the month, we can assure that this increase was 25.1%.
Bitcoin Price (BTC) | CoinGecko - TradingView
The head of US-based research, James Butterfill, assures that there are factors to consider, such as an increase in M2 supply globally, risks regarding stagflation in the United States, and states that believe Bitcoin could be an ideal strategic reserve asset to address the aforementioned issues.
This constitutes in a geopolitical outlook that leans towards the crypto sector, which translates into strong price increases and larger sized inflows. This type of increase is could be influenced by M2 money, which takes into account various monetary offerings with which to invest. While M2 is designated as liquid funds, it is primarily composed of savings accounts and retail money market mutual funds, but also contemplates time deposits and certificates of deposit.
Institutions maintain a focus on Bitcoin. In fact, Butterfill has transpired that U.S.-listed Bitcoin ETFs constitute a cumulative net revenue stream of $62.9 billion (ETF launched in January 2024; SEC approved), far surpassing the previous February high of about $61.6 billion.
One question we may have is why the interest in Bitcoin is not shared with Ethereum. Despite the dominance that BTC had with respect to money flows to ETFs, its counterpart did not have the same reception, meaning minimal inflows from institutions. CoinShares notes that there was a 40% increase in ETH price over last week, but nothing that greatly favored ETFs.
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This case is rather peculiar. Butterfill claims that relative to last week, as little as $1.5 million has come in via Ethereum ETFs. If what we do is compare with for example Sui, we can interpret data that exceeds it by a wide margin, surpassing it with some $11.7 million in net inflows. Something that is also striking is that it has surpassed Solana, who had a record of about $3.4 million in net outflows.
We are possibly talking about new ETFs coming to market. Keeping in mind Gary Gensler's departure from the SEC, this government institution now maintains a much more flexible stance as for the approval of a number of ETFs that are on the waiting list; of at least 70 ETFs. While the last authorization happened in July 2024 when the Ethereum ETF was validated, new major arrivals are expected. Among them may be approved SUI ETF, represented by Canary Capital for an application for approval.
- Main image edited in Canva.
- Information has been consulted from: decrypt.co.
- Translated to English with DeepL.
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