Mar 12 2024: In Asian trading on Tuesday, Bitcoin hovered just below its all-time highs, benefiting from ongoing support stemming from consistent inflows into spot exchange-traded funds (ETFs) approved earlier this year.
The world’s largest cryptocurrency surged by 5.6% to $72,156.6 as of 22:51 ET (02:51 GMT), remaining in close proximity to its peak of $72,771 reached on Monday.
Bitcoin’s recent surge is an extension of the rally sparked by the approval of spot ETFs in January, which attracted significant institutional capital into the token.
Additionally, Bitcoin received a boost from MicroStrategy Incorporated (NASDAQ:MSTR), the leading corporate holder of Bitcoin, purchasing 12,000 tokens on Monday using debt financing.
Bitcoin ETFs Witness $2.7 Billion Weekly Inflows
According to a report from digital asset manager CoinShares released on Monday, investment products tracking Bitcoin saw capital inflows of approximately $2.7 billion in the week ending March 10.
BlackRock Inc’s (NYSE:BLK) iShares Bitcoin ETF (NASDAQ:IBIT) dominated these inflows, attracting nearly $2.1 billion, while Fidelity (NYSE:FBTC) witnessed inflows of $1.34 billion.
Bitcoin remained the primary driver of capital inflows into the cryptocurrency markets, with other major tokens like Ethereum and Solana experiencing minimal inflows or outflows.
Grayscale (NYSE:GBTC), a digital assets manager, observed sustained outflows from its Bitcoin ETF, amounting to $1.7 billion in the past week, as it grappled with intensified competition in the crypto ETFs sector.
The approval of Bitcoin ETFs earlier in 2024 triggered a frenzy of institutional capital inflow into the world’s largest cryptocurrency, offering exposure to the token without the need to directly invest in crypto assets.
Despite Bitcoin surpassing its 2021 highs, trading volumes in the token, especially in the retail sector, remained significantly lower than those witnessed during the 2021 bull run, according to data from Investing.com.
This trend raised concerns about the sustainability of Bitcoin’s recent rally, while also prompting allegations of market manipulation by exchanges and stablecoin operators.
Retail interest in crypto had waned over the past two years, following a sharp price decline amid rising interest rates and a series of high-profile frauds and bankruptcies.
Crypto Stocks Display Mixed Performance
On Monday, crypto-related stocks exhibited mixed performance. While Microstrategy, often viewed as a Bitcoin proxy, rose by 4%, exchange operator Coinbase Global Inc (NASDAQ:COIN) and miner Marathon Digital Holdings Inc (NASDAQ:MARA) fell by 1% and 12%, respectively.
Coinbase, in particular, continues to contend with the Securities and Exchange Commission regarding the regulatory classification of cryptocurrencies.
