US Bitcoin exchange-traded funds have posted their longest run of daily net outflows since listing at the start of the year, part of a wider retreat from riskier assets in a challenging period for global markets.
Cryptocurrencies reeled from a bout of risk aversion in global markets on Monday, at one point sending Bitcoin down more than 16% and saddling second-ranked Ether with the steepest fall since 2021.
Ether, the second-largest token, paced a drop in digital assets following a slump in equities that spread unease in global markets.
US exchange-traded funds investing directly in Ether achieved overall net inflows of $107 million on their first day of trading in launches that will provide a window onto mainstream crypto demand outside of Bitcoin.
Regulators approved the first US exchange-traded funds investing directly in Ether, the world’s second-largest cryptocurrency, according to filings and statements from asset managers.
Bitcoin approached $45,000 for the first time in almost a month with the US exchange-traded funds holding the digital currency seeing a steady inflow of cash from investors and risk appetite rising across financial markets.
The era of US spot Bitcoin exchange-traded funds is a chance to repair the decay in crypto markets caused by the collapse of the FTX exchange and its sister hedge fund Alameda Research, according to market makers.
Bitcoin surpassed $45,000 for the first time in nearly two years as anticipation of an approval of an exchange-traded fund investing directly in the biggest token intensified.
A burst of activity in Bitcoin derivatives has evoked memories of the period in late 2021 when the token surged to an all-time high.
Bitcoin was in sight of $38,000, a level last seen in May 2022, amid an ongoing rally spurred by expectations of fresh demand for the token from exchange-traded funds.
Bitcoin has jumped on bets that the first US exchange-traded funds investing directly in the token are set to be approved. The question now is whether an actual green light for the products would spur some profit-taking.
Market making in digital tokens used to be a font of outsized profitability. The picture today is very different as costs jump and investors avoid a crypto sector scarred by a $2 trillion rout.
Bitcoin is heading for one of its strongest weeks of the year, buoyed by speculation that proposed exchange-traded funds potentially herald new sources of demand for the largest digital asset.
Bitcoin climbed to $30,000 for the first time since April, buoyed by crypto initiatives involving major players from the traditional financial sector.
A rally in cryptocurrencies Tuesday took Bitcoin out of a one-month-old trading range and ignited big jumps in smaller tokens commonly referred to as altcoins.
Bitcoin plunged to the lowest in about 18 months after the freezing of withdrawals by the Celsius lending platform added to concern that systemic risk in the crypto ecosystem will accelerate the digital-asset market meltdown.
