The price of Bitcoin has surged to $57,000 during the opening trading session of the week, following news that nine of the US-listed spot Bitcoin exchange-traded funds (ETFs) recorded all-time high trading volumes.
Reports reveal that Bitcoin Spot ETFs amassed $2.4 billion in a single-day trading volume, an all-time high. BlackRock’s shares of Bitcoin Trust (IBIT) ETF topped the charts, recording around $1.3 billion in total net inflows, representing roughly 55% of the overall figure.
Apart from BlackRock, spot Bitcoin ETFs from Fidelity, Franklin Templeton, Invesco, Bitwise, VanEck, Valkyrie, WisdomTree and Hashdex also contributed to the figure by attracting considerable amounts of inflows.
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Speaking on the impact of ETFs approval on Bitcoin price, Mike Novogratz, the CEO of Galaxy Digital and a prominent figure in the digital asset space, shared his views on the future of Bitcoin and the impact of Exchange-Traded Funds (ETFs) on retail demand.
Novogratz’s optimism is significantly buoyed by the recent U.S. Securities and Exchange Commission’s approval of the first U.S.-listed spot bitcoin exchange-traded funds. This development, according to him, marks a watershed moment for the industry, potentially heralding a new era of institutional and retail engagement with digital assets.
He added that ETF approval could address some of the liquidity and volatility concerns that have previously deterred more conservative investors from entering the crypto market.
Despite the positive momentum generated by the introduction of ETFs, Novogratz cautions about the lingering regulatory uncertainties that cloud the industry’s future. His critique extends to the regulatory approach of the SEC and the need for a more coherent and supportive legislative framework to foster innovation and stability in the crypto sector.
However, he remains bullish on Bitcoin’s role as a store of value, drawing parallels with gold, as reports reveal that the crypto asset is performing better than Gold and stocks in 2024.
This year, Bitcoin’s price has surged by 33%, as sustained upward momentum in the market has also fueled interest in other leading cryptocurrencies like Ethereum (ETH) and BNB. In January alone, over 150 new Bitcoin wallet addresses were created, with each of them holding more than 1,000 BTC worth an estimated $56 million.
As the price of Bitcoin continues to surge experts predict a $6 Trillion market cap for Bitcoin. A bitcoin surge to $64,900 would represent a potential upside of 22% from current levels and would put the cryptocurrency just a few thousand dollars below its record high of about $69,000, reached in November 2021.
Meanwhile, the Bitcoin blockchain is set to undergo a block reward reduction process in April called the ‘Halving. This once-in-four-year event reduces BTC’s supply, further contributing to its high demand.