As of 22:00 on March 5th (Vietnam time), the world’s largest cryptocurrency officially exceeded $69,000 USD, the highest level ever and an increase of over 30% in the past week. Meanwhile, the second largest cryptocurrency, Ethereum, rose to $3,800 USD, marking a 16% increase in the past week.
The bullish trend also spread to other cryptocurrencies, most notably the surge of memecoins – digital currencies with famous meme characters as their logos, such as Shiba Inu dog and the green frog. Among them, Shiba Inu coin increased by over 280% in the past week. Meanwhile, Pepe coin rose by 230% in one week and experienced an astonishing 675% surge within a month.
The inflow of capital into Bitcoin ETFs in the US continues to be a major driving force behind this price rally. Last week, these funds attracted a massive amount of money, reaching $1.73 billion USD, marking a consecutive record-breaking two weeks, according to asset management platform CoinShares. The report also revealed that there is high demand for Ethereum-focused funds, recording a net inflow of $85 million USD.
Bitcoin approaches record high as capital flows into Bitcoin ETFs
Since its launch on January 11th, 2024, Bitcoin ETFs have been attracting unprecedented inflows of capital. The total assets under management of the top 10 Bitcoin ETFs have increased to nearly $50 billion USD.
Notably, BlackRock’s iShares Bitcoin Trust surpassed the $10 billion USD mark on February 29th. This is the fastest capital inflow rate for a newly established ETF.
Fidelity’s Bitcoin fund now manages over $6 billion USD in assets. With its rapid capital inflows, this fund has become Fidelity’s third largest ETF and accounts for a significant portion of the net inflows into Fidelity’s ETFs since the beginning of 2024. “The demand is skyrocketing. These products are being embraced very warmly,” shared Todd Rosenbluth, Head of Research at VettaFi.
“With the launch of 9 new Bitcoin ETFs, significant price volatility tends to occur during regular trading weeks rather than weekends,” said Antoni Trenchev, co-founder of Nexo, a digital asset exchange.
According to CoinDesk, many experts and analysts predict that Bitcoin will reach a new all-time high this week. Markus Thielen, founder of market research company 10xResearch, forecasted that the price movement of this cryptocurrency will be “astonishing.” In addition to the motivation from ETF inflows in the US, the demand for cryptocurrency investments is also witnessing an expansion in various regions.
