Crypto ETF Demand Surges to Record Levels as Bitcoin Roars Back
Bitcoin's recent price surge has been fueled by a massive influx of demand for exchange-traded funds (ETFs), with nearly $1 billion pouring in on Monday alone. The cryptocurrency traded near $86,500 as strong ETF demand reinforced its recent breakout and lifted broader crypto markets.
The buying activity followed a sharp reversal in ETF flows after a weak period for digital-asset products. BlackRock's iShares Bitcoin Trust led the way with $381.4 million in net inflows, while ARK 21Shares Bitcoin ETF and Fidelity Wise Origin Bitcoin Fund received $289.1 million and $238.8 million respectively.
The renewed demand also coincided with heavy short-position liquidations across crypto markets, with nearly $919 million in crypto short positions reportedly liquidated during the latest surge. This combination of stronger ETF flows and forced buying from traders who had positioned for further price declines has contributed to Bitcoin's recent price increase.