A bullish sentiment is growing around Bitcoin (BTC) investments, driven by an increase in inflows into spot BTC exchange-traded funds (ETFs) and favorable trading conditions. Researchers at Bitfinex believe that Bitcoin has reached a bottom price of around $60,000, based on their analysis of weekly market conditions.
The recent Bitfinex Alpha report highlighted three key developments that support this belief. Firstly, there have been consistent high daily closes, indicating strong market performance. Secondly, there have been massive outflows of BTC from crypto exchanges, which is often seen as a negative indicator of market sentiment. However, despite these outflows, Bitcoin has continued to trade above $61,000. Lastly, there have been inflows into the spot Bitcoin ETF market, with the United States recording net positive inflows for seven consecutive days.
In the United States, the Grayscale Bitcoin Trust (GBTC) has historically been responsible for most of the outflows, with over $17.6 billion leaving the trust to date. However, in the last seven days, GBTC has recorded net positive inflows in six of those days. The Bitfinex report found that ETF buyers currently have a similar cost basis of around $62,000, excluding GBTC.
ETFs are popular among flexible traders who prefer to diversify their portfolios at a lower cost and benefit from tax advantages. These investment vehicles provide an alternative way for investors to gain exposure to Bitcoin.
In terms of institutional investments, BlackRock has attracted nearly $16 billion into its iShares Bitcoin Trust (IBIT) and is currently leading the market among the approved Bitcoin ETFs. JPMorgan Chase has also disclosed investments in Bitcoin ETFs offered by various providers, including Grayscale, ProShares, Bitwise, BlackRock, and Fidelity.
In a filing with the U.S. Securities and Exchange Commission (SEC), JPMorgan Chase reported holdings in several Bitcoin ETFs, including ProShares Bitcoin Strategy ETF (BITO), IBIT, Fidelity’s Wise Origin Bitcoin Fund (FBTC), GBTC, and the Bitwise Bitcoin ETF. However, the SEC cautioned that the information provided by JPMorgan Chase may not be accurate and complete.
In other news, there is a documentary about the FTX collapse available on Amazon Prime for $2,500, with assistance from the filmmaker’s mother.
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