BTC Nears All-Time High as Bitcoin ETF Volumes Surge
Bitcoin (BTC) prices reached $68,551 in early trading in Asia on March 5, coming just 0.7% shy of its all-time high of $69,044 recorded 26 months ago on November 10, 2021, according to CoinGecko. Although the asset added a further 7% in the past 24 hours, bears managed to intervene and push it down to $67,000.
In other recent news, Bitcoin had already reached an all-time high in several other currencies including British Pounds and Euros. It has also hit a peak in Australian Dollars, Chinese Yuan, and Canadian Dollars. Chart guru and technical analyst Willy Woo even stated that it wasn’t yet considered a bull market.
Bitcoin ETF Volumes Surge
The recent surge in BTC prices has been largely driven by spot ETFs. These ETFs have been accumulating the asset and experiencing record daily trading volumes. In fact, more than $7.5 billion worth of BTC has been recorded as aggregate inflows to the new nine spot ETFs since their launch in mid-January.
- Despite a massive outflow from Grayscale’s recently converted GBTC fund, the spot ETFs have managed to attract significant investor interest.
- Bloomberg ETF analyst Eric Balchunas reported that March 4 was the second-biggest trading volume day for these ten ETFs with around $5.5 billion.
- BlackRock’s IBIT fund alone accounted for $2.4 billion and crossed $11 billion in assets under management.
CryptoQuant CEO Ki Young Ju predicts that there could be a “sell-side liquidity crisis” this year due to the influx of capital from spot ETFs. He believes that holdings in these ETFs could surpass a couple of million BTC this year.
Macroeconomics outlet ‘Macro Scope’ also reported that more ETF filings from large investment firms are expected to roll in throughout the year. Wall Street firms are continuing to file for Bitcoin ETF exposure in their in-house investment funds, indicating a growing interest in cryptocurrency.
Elsewhere on Crypto Markets
The total market capitalization of cryptocurrencies has increased by 5.5% to $2.63 trillion. However, it remains 15% below its all-time high. This means that altcoins are struggling to keep up with Bitcoin’s rapid ascent.
- Ethereum (ETH) has seen a 4% increase, surpassing $3,600 for the first time in over two years. Nevertheless, it is still down 26% from its all-time high.
- Meme coins DOGE and SHIB have experienced significant gains of 25% and 87%, respectively.
- Other altcoins have seen more modest increases as they attempt to catch up with Bitcoin’s momentum.
Hot Take: Bitcoin Approaching All-Time High
Bitcoin is once again approaching its all-time high, coming just shy of the record set over two years ago. The recent surge in BTC prices has been driven by spot ETFs, which have attracted billions of dollars in inflows since their launch. This influx of capital has the potential to create a sell-side liquidity crisis in the coming months. Additionally, more investment firms are expected to file for Bitcoin ETF exposure, signaling a growing interest in cryptocurrency from Wall Street. While altcoins are struggling to keep up with Bitcoin’s rise, Ethereum has also seen a notable increase. Overall, the crypto market continues to show signs of bullish momentum.
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