Bitcoin ETFs See Record Inflows for 18th Straight Day, Pushing Digital Asset Toward Record High

US exchange-traded funds investing directly in Bitcoin have been experiencing an unprecedented streak of net inflows for 18 consecutive days, driving the largest digital asset closer to a record high. According to data compiled by Bloomberg, these funds have attracted a total of $15.6 billion in net subscriptions since their launch on January 11, bringing their total assets to $62.3 billion.

The surge in demand for Bitcoin ETFs has been fueled by a variety of factors, including the recent surge in US job growth and expectations of Federal Reserve interest-rate cuts. Speculators in the options market are anticipating that Bitcoin will surpass its previous all-time high of $73,798 this month, further driving demand for these funds.

Leading financial institutions like BlackRock Inc. and Fidelity Investments have launched successful Bitcoin funds, with BlackRock’s iShares Bitcoin Trust becoming the world’s largest fund for the token last week. The US Securities and Exchange Commission, which had previously been hesitant to approve Bitcoin ETFs, has recently shown a willingness to embrace digital assets, allowing for the creation of funds for other cryptocurrencies like Ether.

Despite the recent success of Bitcoin ETFs, industry experts believe that the adoption of digital-asset funds is still in its early stages for institutions and intermediaries. As Bitcoin continues to soar in value, memories of the 2022 bear market and subsequent scandals are fading, paving the way for further growth in the cryptocurrency market.

Overall, the surge in demand for Bitcoin ETFs highlights the growing interest in digital assets among investors and the shifting landscape of the cryptocurrency market. With regulatory clarity improving and institutional adoption on the rise, the future looks bright for Bitcoin and other cryptocurrencies.