The recent surge in Bitcoin price, which saw a 2.6% increase in the past 24 hours, can be attributed to the success of spot Bitcoin ETFs.
Bitcoin’s (BTC) recent rise to over $71,000 has propelled it to become the eighth-largest asset in the world by market cap, surpassing silver. This rise marks a key milestone for the cryptocurrency, underlining its growing influence and acceptance within traditional financial markets.
Bitcoin Market Cap Jumps in the Financial Hierarchy
According to data from CompaniesMarketCap, Bitcoin’s market cap now stands at an impressive $1.4 trillion, outpacing silver’s $1.3 trillion. While Bitcoin still trails behind Alphabet Inc (NASDAQ: GOOGL) with a market cap of $1.6 trillion, industry experts foresee a future where the cryptocurrency may even challenge the dominance of gold, the current largest asset globally valued at $14.66 trillion.
Galaxy Digital CEO Mike Novogratz has been vocal about his belief in the potential of Bitcoin market cap to surpass gold as the preferred store of wealth. Despite the disparity in market capitalization between Bitcoin and gold, Novogratz remains optimistic, citing the impending wealth transfer among baby boomers as a driving force behind Bitcoin’s rise.
Out of the estimated $85 trillion in wealth held by baby boomers, a substantial portion managed by registered investors now has access to spot Bitcoin Exchange Traded Funds (ETFs), fueling further adoption and investment in the cryptocurrency.
The recent surge in Bitcoin price, which saw a 2.6% increase in the past 24 hours, can be attributed to the success of spot Bitcoin ETFs. Since the Securities and Exchange Commission (SEC) approved these innovative products in January, institutional and retail investors have poured billions into the crypto market through ETFs. BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Bitcoin ETF (FBTC) have emerged as frontrunners in this race, attracting billions in investment capital.
FBTC, in particular, has witnessed record-breaking net inflows, with a single-day influx of $405 million, bringing its total net inflow to $5.2 billion. Meanwhile, IBIT continues to dominate the ETF market, indicating a growing appetite for Bitcoin among institutional investors. Matt Hougan, CIO of Bitwise Asset Management, likens the approval of spot Bitcoin ETFs to an Initial Public Offering (IPO), suggesting that more capital is yet to be unlocked from major wirehouses.
Bitcoin’s Institutional Adoption and Global Expansion
Institutional giants such as Bank of America Corp (NYSE: BAC), Wells Fargo & Co (NYSE: WFC), and Morgan Stanley (NYSE: MS) are reportedly offering their affluent clients access to spot Bitcoin ETFs.
Furthermore, international markets, including India, are gearing up to embrace spot Bitcoin ETFs, providing retail and institutional investors with new avenues for investment. According to an earlier report from Coinspeaker, Mudrex, an India-based crypto investment platform, is set to offer access to US spot Bitcoin ETFs, further expanding the cryptocurrency’s reach and accessibility.
Renowned entrepreneur Robert Kiyosaki’s bullish forecast adds to the optimism surrounding Bitcoin’s future. With predictions of Bitcoin reaching $300,000 per coin by the end of 2024, investors are increasingly viewing Bitcoin as a lucrative investment opportunity with growth potential.
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