Why is Bitcoin's price hitting new highs? One reason is that so much cash is flowing into investment products, giving people exposure to the asset. And that propelled another record week for crypto funds.
Last week, a record was set with digital asset management company CoinShares' cryptocurrency fund receiving a record $2.7 billion inflows. Said on monday. The majority of that cash, $2.6 billion, was concentrated in BTC.
CoinShares added that the majority of the funds are flowing into the new Spot BTC exchange-traded fund.
The fund offers investors exposure to the largest digital asset by market capitalization by allowing them to purchase shares on stock exchanges that track the price of cryptocurrencies. The U.S. Securities and Exchange Commission (SEC) approved such products in January after a decade of attempts by companies in the field.
Investors are pouring cash into BTC as the largest cryptocurrency network approaches its halving, a quadrennial event that cuts the rewards Bitcoin miners receive in half.Analysts previously said: Decryption They believe that as coins become rarer, the price of the coins will subsequently increase.
Since launching in January, these spot Bitcoin ETFs have been very successful, with BlackRock's iShares Bitcoin Trust in particular attracting large inflows. More than $2 billion flowed into the fund last week, according to CoinShares data.
Elsewhere, CoinShares said investors are also eyeing altcoins like Solana. Funds that gave exposure to the coin, the fifth-largest digital asset by market capitalization, received $24 million.
Solana's price is currently $147.38, up nearly 14% in 7 days. Ethereum's competitors have a market capitalization of $65 billion.
BTC price too soared to new highs It is currently trading at $72,362. according to To CoinGecko. It's up more than 10% since this time last week. And in the past 30 days, the coin's price has increased by over 52%.
Edited by Andrew Hayward
