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*Backstreet Boys voice* Bit. Coin’s. Back. Alright!
Driving the news: Bitcoin reached its highest mark since November of 2021 yesterday, with prices briefly eclipsing $85,000 at one point. Retail investors poured money into bitcoin exchange-traded funds (ETFs), with BlackRock’s ETF registering a single-day record inflow of US$520 million.
- Bitcoin ETFs operate like regular ETFs, which let you invest in a pool of assets under one ticker and trade them as easily as most stocks.
Why it’s happening: The approval of 11 bitcoin ETFs in the U.S. last month has been a godsend for the crypto world. These funds have made it easier for everyday investors in the U.S. to get into the daunting world of crypto, with trading volume up 30% since the approval.
Why it matters: The industry has viewed ETFs as a vital way for crypto to reach a level of mainstream popularity that goes beyond select groups of asset managers and dudes who used to have Bored Ape profile pics. Bitcoin’s recent surge appears to be proving this theory.
- Crypto bulls are confident bitcoin will keep surging, lifting other tokens with it, and will top its all-time high of over CA$92,000 set during the crypto fever pitch of winter 2021.
Yes, but: Take a look at Canada. We’ve had access to crypto ETFs since 2021, and it’s not like everyone these days is walking around bragging about their blockchain wallet or whatever.
What’s next: Bitcoin could also soon get a boost from the “halving,” a process that occurs every four-ish years, when the amount of bitcoin rewarded to miners for mining a bitcoin block is cut in half. This reduces supply, in turn increasing value, and driving more demand.—QH