Since the launch of the Bitcoin spot ETF last month, the market’s enthusiasm for Bitcoin has been reignited. According to Coinglass data, the open interest in the Bitcoin futures market has reached a record-breaking $21 billion, approaching the levels seen during the bull market in 2021. Analysts predict that the successful launch of the ETF and the FOMO sentiment it has sparked will drive Bitcoin to new highs.
Bitcoin Spot ETFs continue to see inflows. According to statistics from Lookonchain, as of yesterday (13th), Bitcoin spot ETFs have attracted a total of 71,584 BTC in inflows. Today (14th) at around 5 pm, the spot price once again broke through $51,000.
In particular, yesterday (13th), US Bitcoin ETFs saw an increase of 10,926 BTC, marking the fifth consecutive day of capital inflows. In addition to GBTC, the other eight ETFs collectively increased their holdings by 12,073 BTC (approximately $590 million), while GBTC decreased its holdings by 1,147 BTC (approximately $56 million). The outflow of funds from GBTC has significantly decreased since January 22nd.
Among the major Bitcoin ETFs, iShares (BlackRock Bitcoin ETF) and Fidelity have increased their holdings by 7,497 BTC (approximately $366.5 million) and 3,039 BTC (approximately $148.5 million) respectively.
The successful launch of Bitcoin ETFs and the continued influx of funds have attracted optimistic expectations for the future price of Bitcoin from Wall Street giant AllianceBernstein. According to COINTURK, analysts Gautam Chhugani and Mahika Sapra from AllianceBernstein believe that the launch of Bitcoin ETFs and the FOMO sentiment it has sparked will drive Bitcoin to new highs.
Chhugani and Sapra stated that although the current interest in Bitcoin has not reached the peak of enthusiasm observed in 2017 and 2021, Bitcoin ETFs have become an important catalyst for driving the price of Bitcoin upward because investors who have a cautious attitude towards Bitcoin can invest in Bitcoin through this product. They pointed out that in the past two trading days, the new ETFs have attracted nearly $1 billion in capital inflows, while the outflow of funds from GBTC has significantly decreased to approximately $50 million.
They also stated that as the price of Bitcoin approaches $50,000, buyers from the bull market in 2021 are about to reach a breakeven point, which is a milestone they have witnessed for the first time in nearly three years and is considered a bullish signal for the market’s future.
In addition to Bitcoin’s price returning to the levels seen during the bull market in 2021, the “open interest” in Bitcoin futures is also approaching the high point reached in mid-November 2021 when the price of Bitcoin surged to $65,000. CoinGlass data shows that the notional value of open interest in Bitcoin futures has reached the highest level in 26 months.
Since the beginning of this year, the open interest in perpetual contracts and futures contracts has grown by 22%, surpassing $21 billion before the deadline, approaching the record of $24 billion set when the price of Bitcoin reached $65,000 in 2021.