Bitcoin and Ethereum Surge as Institutional Investors Pour Millions into Crypto ETFs

Bitcoin surged back above $69,000 on Monday as institutional investors poured hundreds of millions of dollars into spot bitcoin ETFs last week. This influx of investment could potentially drive bitcoin towards its record highs as early as this week, according to analysts. Additionally, ethereum saw a significant spike in value on reports that spot ethereum approvals could soon clear a major hurdle with the SEC.

The surge in bitcoin ETF investments was highlighted by more than 600 investment firms revealing significant holdings in spot bitcoin ETFs. Major banks and hedge funds such as Morgan Stanley, JPMorgan Chase, Wells Fargo, and UBS collectively own $3.5 billion worth of bitcoin ETFs. Hedge fund Millennium Management emerged as the largest investor with $1.9 billion invested across various bitcoin ETFs.

Nathan McCauley, co-founder and CEO of Anchorage Digital, emphasized the growing institutional participation in the cryptocurrency market through bitcoin ETFs. He noted that traditional institutions are driving hundreds of millions of dollars in ETF inflows, signaling a shift towards mainstream adoption of cryptocurrencies.

Inflows into spot bitcoin ETFs reached $948.3 million last week, with FBTC leading the way with $344.5 million in inflows. Analysts believe that this surge in institutional demand could propel bitcoin to test its record highs near $74,000 in the coming weeks, triggering a new wave of investor interest.

Coinbase, a leading cryptocurrency exchange, also experienced a surge in its stock price after receiving an upgrade from BofA. The firm upgraded Coinbase to neutral from underperform, citing positive macroeconomic conditions for the crypto market and improved operating leverage for the exchange. Coinbase stock surged 8.5% on Monday, adding to its gains following the upgrade.

Overall, the cryptocurrency market saw positive price action with bitcoin trading around $69,500 and ethereum spiking to $3,500. Both cryptocurrencies have shown significant gains over the last 24 hours, with bitcoin up nearly 65% in 2024 and ethereum soaring 53% year-to-date.

In addition to the surge in cryptocurrencies, MicroStrategy, a software company holding about $13 billion of bitcoin, saw its stock price jump 5.3% on Monday. The company’s stock rallied more than 34.2% last week following reports that it will join the MSCI World Index at the end of the month.

With institutional investors showing increasing interest in cryptocurrencies and positive price action across the market, the coming weeks could see further growth and potential new highs for bitcoin and other digital assets. Stay tuned for more updates on the evolving cryptocurrency landscape.