Bitcoin exchange-traded funds have pulled in $2.8 billion over six straight days of buying, with BlackRock, Fidelity, and Morgan Stanley among the managers seeing demand. The buying wave has pushed the average ETF holder back into profit even as bitcoin's price gains have stayed modest.
Bitcoin ETFs have now taken in $2.8 billion since September 17, according to Farside Investors data, marking six consecutive days of inflows into funds run by BlackRock, Fidelity, and Morgan Stanley.
Monday's buying was the strongest since October
On Monday alone, investors bought nearly $1 billion in shares. That was the most since October 6, when the funds took in over $1.2 billion and bitcoin hit a new all-time high of $126,080.
Bitcoin's price on Friday stood at nearly $83,975, only modestly higher after reaching as high as $87,330 on Monday. Over the past seven days, the coin's price has surged by nearly 4%.
Bloomberg ETF analyst James Seyffart pointed out that the average ETF buyer is now in profit, after the estimated ETF cost basis surged above $81,72 for the first time since January.
Renewed interest since the Treasury's buyback announcement
Investors have shown renewed interest in bitcoin since the U.S. Department of the Treasury said in August it would at least double the size of its liquidity-support buyback operations. That move pushed 30-year Treasury yields down and weakened the dollar, though yields have since surged again.
Bitcoin kept climbing last week even after lawmakers blocked the Clarity Act and the Federal Reserve hiked interest rates. Crypto market data firm CryptoQuant wrote this week that bitcoin crossed above its 365-day moving average. CryptoQuant said that is a signal the asset has finished being in a bear market.
The debasement trade is back
Bitcoin notched its record of $126,080 in October before sinking after the biggest liquidation event in crypto history. That event saw over $19 billion in bets closed. The so-called debasement trade — where investors put money into an asset to hedge against a currency losing value — is hot again, and bitcoin's price has benefited as the dollar has weakened.
Source: Bitcoin Magazine
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