Bitcoin price continues to rise as Bitcoin spot ETF sees continuous inflows. Currently, BlackRock’s IBIT, a Bitcoin spot ETF, has jumped to the top 7% in terms of market value among all ETFs. QCP Capital suggests that Bitcoin may easily surpass its all-time high before the end of March.
After breaking through $52,000, Bitcoin has not shown any significant decline and continues to fluctuate between $51,500 and $52,000. The market speculates that this strong trend during the Lunar New Year is related to the inflows of the Bitcoin spot ETF.
Looking at all Bitcoin spot ETF products, there have been continuous inflows since January 29, with a new high of $400 million on February 9.
According to Bloomberg senior analyst Eric Balchunas, within 23 trading days since the launch of Bitcoin spot ETFs, BlackRock’s IBIT ETF’s market value has exceeded $5 billion. With continuous capital inflows, IBIT has risen to the top 7% in terms of market value among all ETFs.
QCP Capital predicts that this upward trend can continue. They attribute the recent breakthrough of the $50,000 mark to the large influx of funds attracted by the Bitcoin spot ETF, with daily inflows averaging around $500-650 million, equivalent to purchasing 10,000-13,000 Bitcoins per day.
According to QCP’s analysis, as global fund liquidity increasingly favors spot ETFs, this trend of capital inflows is expected to continue, especially as major financial institutions such as Fidelity announce their allocation of 1-3% of cryptocurrencies in various ETFs, making cryptocurrencies a hot topic in mainstream investment markets.
QCP also observes a significant growth in the Bitcoin call options market, in addition to the inflows in the spot market. Just this week, the market witnessed approximately $10 million in margin being invested in Bitcoin call options expiring between April and December, with exercise prices ranging from $60,000 to $80,000.
Therefore, QCP Capital predicts that with the drive of these strong capital inflows, Bitcoin may easily surpass its all-time high before the end of March.