In May, there was a notable increase in the purchase activity of US spot Bitcoin Exchange Traded Funds (ETFs). The US Securities and Exchange Commission (SEC) approved eleven ETFs, which collectively acquired 25,729 Bitcoin valued at $1.83 billion.
The amount of BTC purchased by these ETFs in the current month was eightfold more compared to the previous month, which saw a purchase of only 29,592 BTC.
During the previous week, there was a significant rise in buying activity, marking the highest level since mid-March, when the price of Bitcoin reached a record-breaking high of approximately $73,000.
During the past five months, these Bitcoin ETFs have had a net increase in funds of $15.69 billion, overseeing a total of $61 billion in Assets Under Management (AUM). Currently, gold exchange-traded funds (ETFs) possess 60% of the assets under management (AUM) of these recently established US spot Bitcoin ETFs.
The price of Bitcoin has exhibited significant volatility, experiencing fluctuations in its daily highs and lows. Bitcoin reached a maximum value of $71,093 on Wednesday, but it is currently being traded at $69,407.61, indicating a 0.05% increase in the past 24 hours.
Cryptocurrency market analysts express optimism that if Bitcoin exceeds its present all-time high (ATH), it has the potential to go to $83,000 or possibly $100,000 before the conclusion of the year. According to Robert Kiyosaki, the renowned author of “Rich Dad Poor Dad,” he foresees Bitcoin surging to $350,000 by August 25.
The exponential expansion of spot Bitcoin exchange-traded funds (ETFs) in the United States demonstrates the growing recognition and assimilation of Bitcoin inside the realm of conventional finance.
The permission from the Securities and Exchange Commission (SEC) has allowed institutional investors to safely participate in Bitcoin, resulting in a substantial increase in capital flowing into Bitcoin and providing support for its price.
The rapid acquisition of a significant amount of assets under management (AUM) by Bitcoin exchange-traded funds (ETFs) demonstrates a change in investor preference towards digital assets.
With the increasing popularity of Bitcoin, the significance of ETFs within its ecosystem is expected to grow, facilitating the entry of investors into the Bitcoin market.
