United

Bitcoin

Gold

Update 2 pm UTC: Added quotes from James Wo.
An estimated 75% of new Bitcoin investments come from the 10 spot Bitcoin exchange-traded funds (ETFs) that were approved in the United States on Jan. 11.
In the past two weeks, over three-quarters of new Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) investments originated from spot Bitcoin ETFs, excluding Grayscale’s Bitcoin Trust (GBTC) ETF, <a href="https://cryptoquant.com/insights/research/65cce0397f4ffd2b53a998bc-14-February-2024-On-the-back-of-ETF-demand-Bitcoin-Breaches-The-50k-Mark-Amid-Ri" target="_blank" rel="noopener nofollow">according</a> to a Feb. 14&nbsp;report by on-chain data analytics firm CryptoQuant.
“We estimate over 75% of new investment into Bitcoin are coming from these ETFs. Moreover, investment from these ETFs has increased to 2% of the total historical investment in Bitcoin in just one month as measured by the realized market capitalization,” the report said.
Bitcoin rose 1.8% in the 24 hours leading up to 10:45 am UTC on Feb. 15 to trade at $52,354. Bitcoin reached a two-year high of $51,000 on Feb. 14, <a href="https://cointelegraph.com/news/bitcoin-1-trillion-market-cap">propelling its market capitalization above $1 trillion</a><a href="https://cointelegraph.com/news/bitcoin-1-trillion-market-cap"></a>&nbsp;for the first time since November 2021. The total crypto market capitalization is $1.96 trillion, up 2.01% on the day at the time of writing
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-02/2bc953a9-5df5-4e8a-9fe3-49412a19e11a.png" alt="" title="">
 <figcaption style="text-align: center;">
 BTC/USD, 7-day chart. Source: CoinMarketCap
 </figcaption>
</figure>
<a href="https://twitter.com/jjcmoreno/status/1757797640484327613/photo/1" target="_blank" rel="noopener nofollow">According</a> to an X&nbsp;post&nbsp;on Feb. 14 by CryptoQuant head of research Julio Moreno, ETF demand was the main driver behind Bitcoin’s price surge:
<blockquote data-ct-non-breakable="true">
 “Bitcoin has crossed the $50,000 mark mostly on the back of fresh demand from ETFs.”
</blockquote>
Related: <a href="https://cointelegraph.com/news/btc-price-55-4-k-next-warnings-bitcoin-euphoria">BTC price due $55.4K next amid warnings over end of Bitcoin 'euphoria'</a>
The spot Bitcoin ETFs amassed a total of 4,115 Bitcoin, worth approximately $215 million, <a href="https://farside.co.uk/?p=997" target="_blank" rel="noopener nofollow">according</a> to data from Farside Investors. BlackRock’s iShares Bitcoin Trust ETF was responsible for the lion’s share of the inflows, with a total of 4,843 Bitcoin, worth $253 million at the time of writing.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-02/5b8f3a7d-7776-4657-aa38-a7b8feb3dbad.png" alt="" title="">
 <figcaption style="text-align: center;">
 Spot Bitcoin ETF flows. Source: farside.co.uk
 </figcaption>
</figure>
The CryptoQuant research report expects Bitcoin to breach $56,000 as the next significant price level:
<blockquote data-ct-non-breakable="true">
 “The next target for Bitcoin stands at $56,000 from a network valuation perspective. Valuation indicators are not flashing risks of a meaningful price correction.”
</blockquote>
James Wo, the founder and chief executive officer of crypto investment firm DFG, agreed that ETF inflows are the main reason for Bitcoin reaching $52,000. He told Cointelegraph: “The entirety of spot Bitcoin ETF products now holds a cumulative value of more than $10 billion, with BlackRock buying 12x more BTC daily than is being mined, which means the crypto ecosystem entered a new era of institutional adoption through the spot Bitcoin ETFs.”
However, Bitcoin price faces significant <a href="https://cointelegraph.com/news/bitcoin-faces-52k-brick-wall-bitfinex-btc-price-erases-dip">resistance around $52,000</a>&nbsp;due to a “brick wall of asks on Bitfinex,” up to the $52,300 mark, <a href="https://twitter.com/ColeGarnersTake/status/1757638900871291032" target="_blank" rel="noopener nofollow">according</a> to an&nbsp;X&nbsp;post on Feb. 14 by on-chain analyst Cole Garner.
Related: <a href="https://cointelegraph.com/news/gold-etfs-bleed-this-year-as-bitcoin-etfs-hit-record-volumes">Gold ETFs bleed $2.4B so far in 2024 as Bitcoin ETFs hit record volumes</a>

Bitcoin ETFs account for about 75% of new investments — CryptoQuant

Cointelegraph

Other articles published on Feb 15, 2024

Grayscale Expands Altcoin Funds Amid Bitcoin ETF Outflows

Klaytn, Finschia Blockchains Merge To Become Asia’s Biggest Web3 Ecosystem In Abu Dhabi

Shiba Inu to $0.00001: Here's What SHIB Price Needs to Finally Erase Zero

Telefónica Uses Chainlink on Polygon for SIM Security

New Liquidity Offer Triggered Terra (LUNA) Rally!

Medifakt Shines as Silver Sponsor at TOKEN2049 Dubai Event

Join our free newsletter for daily crypto updates!