Bitcoin Rebound Boosts US-Listed ETF Flows Amid Price Surge
Bitcoin's recent rebound has turned US-listed spot bitcoin exchange-traded fund (ETF) flows positive for the year, according to data compiled by Bloomberg. Since August 19, when the US Treasury announced it would increase buybacks of long-dated bonds, investors have poured roughly $4.6 billion into these funds, a significant shift from earlier in the year.
The influx of capital has been driven by Bitcoin's price surge, which has risen about 35% to above $86,000. The token was trading at around $85,900 early Wednesday morning in New York. As a result, the total market value of digital assets has climbed back to $3 trillion for the first time since January.
Chris Weston, head of research at Pepperstone, noted that the average holder of US spot bitcoin ETFs is now comfortably back in unrealised profit, with an estimated average cost of Bitcoin held by the funds at $82,000. Paul Howard, senior director at Wincent, believes the rally has caught many off guard and that attention was focused on developments in artificial intelligence this year.