Spiking to the new all-time high, Bitcoin (BTC) pushed the capitalization of BTC spot ETFs in the U.S. above $50 billion. Meanwhile, liquidity is leaving Gold ETFs.
Bitcoin Spot ETFs amassed $50 billion liquidity, Eric Balchunas says
The aggregated USD-denominated value of assets backing 11 spot Bitcoin ETFs in the United States exceeded $50 billion today, on March 5, 2024. The U.S. SEC approved the products only seven weeks ago, as noticed by Eric Balchunas, Bloomberg's chief ETF expert.
Grayscale's ETF GBTC, a successor of Grayscale Bitcoin Trust on the OTC market, remains the dominant Bitcoin ETF by volume.
Initially, this metric started at the $30 billion level, but then over $8 billion of liquidity was injected by asset managers. The rest of the upsurge should be attributed to the rocketing price of Bitcoin (BTC).
Bitcoin (BTC) today registered a fresh price ATH, as reported by U.Today. The price of the flagship cryptocurrency added over 6% in the last 24 hours.
Alex DovbnyaOnce the ATH was confirmed, the price of Bitcoin (BTC) dropped below $66,500. Almost $600 million in both short and long positions were erased in last 24 hours.
Gold ETFs might be left in dust by summer
Meanwhile, the dynamics of Gold ETFs demonstrates opposite pattern. Balchunas noticed that, starting from December 2023, Gold ETFs have been seeing only outflows on weekly charts.
Should Bitcoin ETFs keep this pace, they will surpass Gold-based products as soon as this summer. At the same time, this scenario looks insane for the analyst and can only be valid if the Bitcoin (BTC) rally expands.
Vladislav SopovAlso, if launched in 2024, the Ethereum Spot ETF might steal liquidity from its BTC-based competitors. In recent weeks, a number of analysts expressed skepticism about ETH ETF prospects in 2024.
Arman Shirinyan
Alex Dovbnya
Dan Burgin