Summary:
BlackRock and Grayscale hold nearly 3% of Bitcoin's circulating supply through their ETFs.
$533 million in inflows for digital asset products last week, the largest in five weeks.
U.S. spot Bitcoin ETFs saw a surge of $202.6 million in net inflows, marking an eight-day streak.
Federal Reserve Chair Jerome Powell's comments hint at possible interest rate cuts, affecting Bitcoin's price.
Bitcoin's price surged to over $64,000 following Powell's remarks, reflecting its market sensitivity.
Bitcoin's Growing Institutional Presence
Asset managers BlackRock and Grayscale are making headlines as they now control nearly 3% of the circulating supply of Bitcoin through their U.S. spot Bitcoin ETFs. Recent inflows have significantly boosted their holdings, with BlackRock's iShares Bitcoin Trust (IBIT) owning 357,736.76 BTC and Grayscale's GBTC holding 227,712.33 BTC. Together, these ETFs account for 2.97% of Bitcoin's circulating supply, as reported by Glassnode.
Recent Inflows and Market Sentiment
Last week marked a pivotal moment for digital asset investment products, pulling in $533 million, the largest inflow in five weeks according to CoinShares. The surge in investments was largely influenced by the Federal Reserve's signals regarding potential interest rate cuts. On a single day, U.S. spot Bitcoin ETFs attracted $202.6 million, contributing to an eight-day streak of positive inflows.
Impact of Federal Reserve's Remarks
The uptick in inflows coincided with a speech from Federal Reserve Chair Jerome Powell at the Jackson Hole Economic Policy Symposium, where he indicated that âthe time has come for policy to adjust.â His dovish comments led to a spike in Bitcoin's price, which soared above $64,000, before settling around $62,300âstill a 2.9% increase over the week.
For those tracking the crypto market, this trend signifies Bitcoin's sensitivity to interest rate expectations, opening up discussions on the future of digital assets in a changing economic landscape.
Edited by Stacy Elliott
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