Altcoins
Altcoins rally with record ETF inflows
The altcoin market is on fire! Fueled by a rise in value and a decline Bitcoin dominance, altcoins are experiencing a red-hot rally. The total market capitalization of altcoins soared 15% in just two weeks, reaching a staggering $1.156 trillion. But what is driving this insane push? Let’s find out.
Bitcoin ETFs Drive Market Growth
In a historic milestone for the cryptocurrency market, Bitcoin ETF in the United States have seen an inflow of more than $2 billion over the past two weeks. A record $1 billion was received last week, including $305 million on May 21 alone. Bitcoin ETFs, which track the price of Bitcoin and are traded on conventional exchanges like the NYSE, provide investors with exposure to Bitcoin without needing to hold the cryptocurrency directly.
According to data from Other side, U.S. spot Bitcoin ETFs saw net inflows of approximately $252 million on May 24, marking the 10th consecutive trading day of net inflows. Specifically, BlackRock’s IBIT saw an inflow of $182 million, Fidelity’s FBTC received $44 million, Bitwise’s BITB attracted $6.4 million, and ARK 21Shares Bitcoin ETF recorded an influx of 4 million dollars.
Analyst Outlook: Lark Davis’ Bold Predictions
Crypto influencer Lark Davis in his post predicted substantial price increases for Bitcoin and Ethereum, forecasting Bitcoin to hit $150,000 and Ethereum $15,000. Davis noted this trend as a growing impact of Bitcoin ETFs, which already attract hundreds of millions of dollars in daily entries. He expects a similar trend for Ethereum ETFs, which will begin trading soon.
According to a report According to Kaiko analysts, Grayscale can be a game changer for ETH ETFs similar to BTC ETFs. Grayscale’s upcoming Ether (ETH) spot ETF could see daily outflows of around $110 million if it follows the same trend as the Grayscale Bitcoin Trust (GBTC) when it converted to an ETF. After the January 11 conversion, GBTC saw an outflow of 23% of its assets, amounting to $6.5 billion in the first month.
Davis expects regular investors, institutional buyers, wealth managers, pension funds and countries to pour billions into these ETFs daily as the bull market peaks. The influx of capital is expected to push up prices. He claims that ETF-focused investments would drive up the prices of Bitcoin and Ethereum as market sentiment is not optimistic enough given their growth potential.
Interestingly, Q1 reports revealed that more than 20% of US spot Bitcoin ETF exposure was held by large investors and institutions with assets exceeding $100 million. This includes large hedge funds, banks and even the Wisconsin state pension fund, underscoring the growing institutional interest in Bitcoin ETFs and indicating that ETH ETFs will meet a similar fate.
Although ETH ETFs have yet to launch, speculation is that they could reverse BTC ETF inflows and make altcoin history. Accept?
Also discover: Mt. Gox transfers $840 million in Bitcoin before creditors are paid: will the price of BTC fall?