On Monday, Bitcoin reached its highest price since December 2021, surpassing the $50,000 mark for the first time in over two years. This caused a ripple effect, leading to a surge in the price of other cryptocurrencies and related stocks. The stock of Coinbase and bitcoin ETFs saw a significant increase, as well as the stock of bitcoin miner Marathon Digital (MARA).
Bitcoin continued to trade above $50,200 throughout the day, briefly hitting $50,314 in the morning. This is its highest level since December 2021. While Bitcoin had spiked to $49,000 on the day of the ETF launch, it fell back to its early December 2023 level after the SEC announcement. Despite this, Bitcoin has still seen an increase of over 18% so far this year.
Ethereum, another popular cryptocurrency, also saw a rise, hovering near $2,650 at four-week highs and up 15% so far in 2024.
The stock of crypto exchange Coinbase (COIN) also saw a surge of 3.8% on Monday, pushing it back above its 50-day moving average. Marathon Digital stock also saw a significant increase of 14.2%, reaching levels similar to those in late December.
Bitcoin ETFs also saw a jump of more than 5.5% during trading, following a 4% increase on Friday.
In terms of fund inflows since the launch of spot Bitcoin ETFs on January 11, BlackRock’s iShares Bitcoin Trust (IBIT) has been the clear leader with around $3.75 billion in inflows, according to BitMEX Research data. The Fidelity Wise Origin Bitcoin Fund (FBTC) follows with $3 billion in inflows. The ARK 21Shares Bitcoin ETF (ARKB) surpassed Bitwise Bitcoin ETF (BITB) in terms of inflows on Friday, with ARKB recording $918.5 million and BITB recording $785.8 million.
On the other hand, Grayscale Bitcoin Trust (GBTC) has seen outflows of about $6.38 billion as of February 9, although these have been slowing down. Despite this, Grayscale remains the leader in terms of assets, with $22.12 billion under management, followed by iShares Bitcoin Trust at $4.18 billion. Since the launch of the new ETFs, they have seen inflows of $2.65 billion, according to BitMEX research.
Looking ahead to 2024, there are other trends that are expected to drive Bitcoin, including the upcoming halving event in April and the influx of institutional participation following the ETF launch. However, the most crucial factor will be mainstream adoption, according to market strategist Joel Kruger.
He believes that with the approval of Bitcoin spot ETFs, traditional institutions will make more of an effort to promote the value of Bitcoin. Kyle DaCruz, Director of Digital Assets Products at VanEck, also believes that we have yet to see the full impact of institutional inflows. VanEck’s spot Bitcoin ETF, the VanEck Bitcoin Trust (HODL), has seen inflows of over $75.5 million since its launch on January 11 and has $161.7 million under management.
However, a majority of financial advisors do not currently have access to these ETFs, as many platforms require due diligence and other parameters to be met, which can take months. DaCruz believes that when this changes, there will be a significant unlock of potential for these ETFs.
In conclusion, the rise of Bitcoin and other cryptocurrencies is expected to continue in the coming years, with the support of mainstream adoption and institutional participation. To stay updated on the latest stock news and updates, you can follow Harrison Miller on Twitter @IBD_Harrison.
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