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Bitcoin Bulls Racing for $450K? Zooming in on Crypto ETFs
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Bitcoin surged above the $72,000 mark on Monday, driven by supply challenges, hopes of the Fed cutting interest rates in June and robust demand for the digital asset since introduction of spot Bitcoin ETFs.
Optimistic Outlook
The digital asset reaching its fresh record peak is reflective of the bullish sentiment of investors, with many anticipating Bitcoin to rally further throughout 2024. According to Standard Chartered, as quoted on Yahoo Finance, the cryptocurrency is expected to breach the $100,000 mark by the end of the current year.
Research firm Fundstrat estimates Bitcoin to settle around $116,000-$137,000, while hedge fund SkyBridge foresees the asset hitting $170,000 by April 2025. VanEck maintained its medium-term estimate for the asset at $350,000.
Per Mark Connors, head of research for crypto asset manager 3iQ, the cryptocurrency is expected to hit $180,000 by the end of 2024, reaching $450,000 by 2025.
Supply Squeeze Spurs Rally
Currently limited to only 900 coins being generated daily by the Bitcoin network, the demand for Bitcoin significantly outpaces its supply. Since January, the newly introduced ETFs have been acquiring an average of 4,000 coins daily, according to Yahoo Finance.
Trading activity has surged due to the introduction of 11 spot Bitcoin ETFs, drawing in billions since their January debut.
However, the currency's supply is anticipated to face further constraints in April, wherein Bitcoin will experience a phenomenon referred to as the halving, which happens every four years. This will result in the supply of the digital asset being curbed by 50%, lending further support to its price.
Inflow Avalanche
Bitcoin continues its unprecedented surge, driven by record-breaking capital inflows into cryptocurrency products and the imminent reduction in the digital token's supply growth. According to Yahoo Finance, last week alone, a staggering $2.7 billion flooded into crypto assets, with the majority directed toward Bitcoin, as reported by CoinShares International Ltd.
ETFs offered by industry giants such as BlackRock Inc. and Fidelity Investments have collectively attracted a net inflow of $9.5 billion to date.
Bitcoin Futures Reflect Bullish Sentiment
With the demand for the digital currency rising among institutional investors and the investment community, increased Chicago Mercantile Exchange (CME) Futures' open interest, coupled with a rise in prices, confirms the upward trend in Bitcoin.
According to Coindesk, the CME Bitcoin futures market is experiencing unprecedented activity. Last Friday, a record-breaking 28,899 standard futures contracts were active on the CME, representing a notional open interest of $10.3 billion, double the peak reached during the 2021 bull market, which stood at $5.2 billion.
Rate Cut by Fed to Boost Prices
If the Fed cuts rates in June 2024, investors may view Bitcoin as an alternative to the depreciating dollar, which moves inversely with interest rate adjustments by the Fed. The rising probability of the Fed cutting interest rates from the second half of this year, coupled with de-dollarization, tends to create opportunities in digital currencies.
Moreover, any Fed rate cut would boost risk-on sentiments, which, in turn, would help Bitcoin prices.
ETFs in Focus
Below, we mention a few ETFs for investors to increase their portfolio’s exposure to Bitcoin and capitalize on its bullish trend.
Grayscale Bitcoin Trust (GBTC - Free Report) ) gained 45.83% over the last month and 161.51% over the last year.
IShares Bitcoin Trust Registered (IBIT - Free Report) ) gained 44.84% over the last month.
ProShares Bitcoin Strategy ETF (BITO - Free Report) ) gained 45.33% over the last month and 146.41% over the last year.
Fidelity Wise Origin Bitcoin Fund (FBTC - Free Report) ) gained 45.18% over the last month.
ARK 21Shares Bitcoin ETF (ARKB - Free Report) ) gained 44.84% over the last month.
Ethereum's Rally on the Horizon?
Following the remarkable demand witnessed for spot Bitcoin ETFs in the initial two months of their launch, market analysts are eagerly anticipating the approval of a spot Ethereum ETF, according to CoinGape.
However, enthusiasm for this prospect appears to be fading but investors can be on the lookout for the following funds to profit from the anticipated approval.
ProShares Ether Strategy ETF (EETH - Free Report) ) gained 48.31% over the last month and 61.95% over the past three months.
VanEck Ethereum Strategy ETF (EFUT - Free Report) ) gained 38.36% over the last month and 48.65% over the past three months.
Bitwise Ethereum Strategy ETF (AETH - Free Report) ) gained 47.81% over the last month and 62.19% over the past three months.
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Bitcoin Bulls Racing for $450K? Zooming in on Crypto ETFs
Bitcoin surged above the $72,000 mark on Monday, driven by supply challenges, hopes of the Fed cutting interest rates in June and robust demand for the digital asset since introduction of spot Bitcoin ETFs.
Optimistic Outlook
The digital asset reaching its fresh record peak is reflective of the bullish sentiment of investors, with many anticipating Bitcoin to rally further throughout 2024. According to Standard Chartered, as quoted on Yahoo Finance, the cryptocurrency is expected to breach the $100,000 mark by the end of the current year.
Research firm Fundstrat estimates Bitcoin to settle around $116,000-$137,000, while hedge fund SkyBridge foresees the asset hitting $170,000 by April 2025. VanEck maintained its medium-term estimate for the asset at $350,000.
Per Mark Connors, head of research for crypto asset manager 3iQ, the cryptocurrency is expected to hit $180,000 by the end of 2024, reaching $450,000 by 2025.
Supply Squeeze Spurs Rally
Currently limited to only 900 coins being generated daily by the Bitcoin network, the demand for Bitcoin significantly outpaces its supply. Since January, the newly introduced ETFs have been acquiring an average of 4,000 coins daily, according to Yahoo Finance.
Trading activity has surged due to the introduction of 11 spot Bitcoin ETFs, drawing in billions since their January debut.
However, the currency's supply is anticipated to face further constraints in April, wherein Bitcoin will experience a phenomenon referred to as the halving, which happens every four years. This will result in the supply of the digital asset being curbed by 50%, lending further support to its price.
Inflow Avalanche
Bitcoin continues its unprecedented surge, driven by record-breaking capital inflows into cryptocurrency products and the imminent reduction in the digital token's supply growth. According to Yahoo Finance, last week alone, a staggering $2.7 billion flooded into crypto assets, with the majority directed toward Bitcoin, as reported by CoinShares International Ltd.
ETFs offered by industry giants such as BlackRock Inc. and Fidelity Investments have collectively attracted a net inflow of $9.5 billion to date.
Bitcoin Futures Reflect Bullish Sentiment
With the demand for the digital currency rising among institutional investors and the investment community, increased Chicago Mercantile Exchange (CME) Futures' open interest, coupled with a rise in prices, confirms the upward trend in Bitcoin.
According to Coindesk, the CME Bitcoin futures market is experiencing unprecedented activity. Last Friday, a record-breaking 28,899 standard futures contracts were active on the CME, representing a notional open interest of $10.3 billion, double the peak reached during the 2021 bull market, which stood at $5.2 billion.
Rate Cut by Fed to Boost Prices
If the Fed cuts rates in June 2024, investors may view Bitcoin as an alternative to the depreciating dollar, which moves inversely with interest rate adjustments by the Fed. The rising probability of the Fed cutting interest rates from the second half of this year, coupled with de-dollarization, tends to create opportunities in digital currencies.
Moreover, any Fed rate cut would boost risk-on sentiments, which, in turn, would help Bitcoin prices.
ETFs in Focus
Below, we mention a few ETFs for investors to increase their portfolio’s exposure to Bitcoin and capitalize on its bullish trend.
Grayscale Bitcoin Trust (GBTC - Free Report) ) gained 45.83% over the last month and 161.51% over the last year.
IShares Bitcoin Trust Registered (IBIT - Free Report) ) gained 44.84% over the last month.
ProShares Bitcoin Strategy ETF (BITO - Free Report) ) gained 45.33% over the last month and 146.41% over the last year.
Fidelity Wise Origin Bitcoin Fund (FBTC - Free Report) ) gained 45.18% over the last month.
ARK 21Shares Bitcoin ETF (ARKB - Free Report) ) gained 44.84% over the last month.
Ethereum's Rally on the Horizon?
Following the remarkable demand witnessed for spot Bitcoin ETFs in the initial two months of their launch, market analysts are eagerly anticipating the approval of a spot Ethereum ETF, according to CoinGape.
However, enthusiasm for this prospect appears to be fading but investors can be on the lookout for the following funds to profit from the anticipated approval.
ProShares Ether Strategy ETF (EETH - Free Report) ) gained 48.31% over the last month and 61.95% over the past three months.
VanEck Ethereum Strategy ETF (EFUT - Free Report) ) gained 38.36% over the last month and 48.65% over the past three months.
Bitwise Ethereum Strategy ETF (AETH - Free Report) ) gained 47.81% over the last month and 62.19% over the past three months.