Spot Bitcoin exchange-traded funds (ETFs) have hit a new record, attracting a staggering $2.72 billion in weekly net inflows over an impressive five-week consecutive streak, as revealed by the latest on-chain data on SoSoValue.
Bitcoin ETFs Thrive
The ETF market has recently experienced a notable surge in investor interest, with inflows significantly outpacing outflows. This trend is likely attributed to the United States Securities and Exchange Commission’s (SEC) ongoing efforts to streamline the approval process for listing ETFs.
At the start of the month, former Fox Business journalist Eleanor Terrett revealed that the U.S. SEC is considering this groundbreaking move that, if successfully implemented, could exempt ETF issuers from undergoing rigorous and time-consuming processes.
This means that ETF issuers might eventually have to skip the filing of both the 19b-4 and S-1 forms and the 75 days of waiting for SEC approval, after a token meets the criteria, which will consequently foster a more favorable environment for more ETF issuance and adoption.
Bitcoin Records New Highs
The significant influx of funds into the ETF sector is likely a key driver behind Bitcoin’s remarkable rally, which has propelled the asset to a new all-time high of over $123,000.
Earlier today, Bitcoin crossed the $123,000 threshold but has dropped a bit, settling at a little over $121,000 at the time of writing, according to data on CoinMarketCap.
Another factor that has likely contributed to the rally is the increase in institutional adoption. Prominent and bullish firms like Michael Saylor’s Strategy, Tokyo-based Metaplanet, and medical technology company Semler Scientific have continued to stack up their Bitcoin treasuries, believing in the potential of the asset.
Strategy, with its title as the world’s first and largest corporate Bitcoin holder, continues with its aggressive buys, scooping up Bitcoins with near-weekly purchases. Although the firm did not announce any purchases last week, in line with its pattern of pausing Bitcoin accumulation around quarter-end, its total Bitcoin holdings as of last week still amount to 597,325 BTC after its previous purchase of 4,890 BTC. At press time, the firm holds 601,550 BTC.
Last Friday, when Bitcoin was at $118,000, Strategy had $28 billion in unrealized profit from its bitcoin position. However, with Bitcoin hitting a new ATH of over $123,000, the firm’s unrealized gains would have ballooned substantially.
