Bitcoin Jumps to Over $62,000 – Records for ETFs

Bitcoin (BTC) is trading at around $63,000 on Thursday morning, the highest it has been since November 2021. The still young Bitcoin ETFs are proving to be price drivers and are setting records.

“This is just crazy,” wrote Bloomberg analyst Eric Balchunas on X yesterday on the topic of Bitcoin ETFs . He was referring to record sales of Bitcoin ETFs, which have only been on the market in the US since January 11th.

Balchunas and his colleague James Seyffart have established themselves as the first port of call for analysis because they correctly predicted the approval of ETFs and now break down the trading data in an insightful manner almost every day. During the record day for Bitcoin ETFs, the crypto reserve currency jumped 9 percent to a level of around $63,000 – surpassing all of BTC’s highs since November 2021. What’s actually going on? Is Bitcoin now galloping along merrily?

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We are now in the eighth week of trading with Bitcoin ETFs in the USA

They had a dream start on January 11th , but the initial euphoria was initially marred by sales in the Grayscale BTC ETF. The Grayscale ETF was previously a closed-end fund and therefore not new. That’s why Balchunas, Seyffart and other experts usually treat its results separately from the nine other, really new Bitcoin ETFs. On February 28th they pulverized their previous high of $3 billion with a trading volume of around $6 billion – and the previous record turnover with Bitcoin ETFs only came from Monday, as Balchunas emphasized.

February 28th was also a record day for Bitcoin ETFs in terms of capital inflow. Seyffart summarizes succinctly on The $216 million that were recorded as negative on the Grayscale ETF yesterday have already been deducted. The Bitcoin ETFs in the USA are physically backed with BTC. This means: If $673 million are invested in the ETFs in one day alone, they have to buy more than 10,000 Bitcoin at the same time at current prices. Currently only around 900 BTC are mined every day and after the Bitcoin Halving in April this number drops to 450.

With this background knowledge it is possible to understand why it is not only the otherwise sober Balchunas who uses superlatives to classify the situation surrounding Bitcoin ETFs. Whether in terms of sales, capital attracted or the amount of trading movements – it is becoming clear that Bitcoin ETFs are breaking records that have historically been set by ETFs in other asset classes. “The numbers are absurd, an absolutely rare thing here,” wrote Balchunas, who has been reporting professionally on the entire ETF sector for a long time.

Conclusion: BTC rally – now all-time high in view

Bitcoin is now less than 10 percent away from its all-time high, which dates back to November 2021 and is around $68,000. If the impressive trend in interest and willingness to invest in Bitcoin ETFs continues, a new all-time high for BTC should be within reach.

Optimists are already looking ahead and say that BTC’s price curve will advance to previously unknown levels after reaching $68,000. 100,000 US dollars per Bitcoin as a magical six-digit price target was already announced by Standard Chartered Bank , for example, before the ETFs were approved – but the time frame was the end of 2024. Bitcoin currently seems hard to stop the results and effects of the ETFs exceed expectations in spades. However, crypto veterans also know that the high volatility of Bitcoin has caused many a day trader to despair.

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(Featured image by Karolina Grabowska via Pexels)

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