Discover why Bitcoin's price surge continues, with a focus on ETFs and altcoins like Solana. Stay updated on crypto news with daily updates in your inbox.
What's propelling Bitcoin to unprecedented heights? A significant factor lies in the influx of capital pouring into investment vehicles offering exposure to the digital asset. This surge has propelled crypto funds to achieve yet another record-breaking week.
Last week witnessed a historic milestone as crypto funds received a staggering $2.7 billion, marking the highest influx ever recorded, as reported by digital asset manager CoinShares on Monday. The lion's share of this capital, amounting to $2.6 billion, was specifically directed towards BTC.
The majority of these funds found their way into newly established spot BTC exchange-traded funds, according to insights provided by CoinShares.
These funds grant investors access to the leading digital asset by market capitalization, allowing them to purchase shares on a stock exchange that mirror the cryptocurrency's price movements. The United States Securities and Exchange Commission (SEC) granted approval for such products in January, following a decade-long pursuit by companies within the space.
Investors have been pouring funds into BTC as anticipation builds around the impending halving event, a quadrennial occurrence that halves the rewards earned by Bitcoin miners. Analysts, as previously highlighted by Decrypt, anticipate a surge in the coin's value post-halving due to increased scarcity.
Since their introduction in January, these spot Bitcoin ETFs have experienced remarkable success, attracting substantial inflows, particularly evident in BlackRock’s iShares Bitcoin Trust. CoinShares' data indicates that last week alone, over $2 billion flowed into this fund.
Meanwhile, CoinShares also noted investor interest in alternative coins such as Solana. Funds offering exposure to Solana, the fifth-largest digital asset by market capitalization, received $24 million in investments.
Solana is currently valued at $147.38, experiencing a nearly 14% surge over the past seven days. This Ethereum competitor boasts a market capitalization of $65 billion.
BTC's price surge has also been notable, with the cryptocurrency now trading at $72,362, as per CoinGecko's latest data. Over the past week, it has recorded a remarkable 10% increase, while its price has soared by over 52% in the last 30 days.