In the world of cryptocurrencies, every other tweet seems to be a prophecy about the imminent end of the financial world. Richard Teng, the chief executive officer (CEO) of Binance, has pointed out that Bitcoin is about to skyrocket to an all-time high of $80,000 by the end of the year. All thanks to the huge interest of institutional traders who have recently discovered all the benefits of cryptocurrency ETFs.
Teng, being a good strategist, foresees not only Bitcoin's rise but also a growing audience of Bitcoin ETF fans who are eager to join the crypto community. However, Richard Teng admits that the way to these astronomical heights will be filled with ups and downs, which will make the market even more attractive.
The total net asset value (NAV) of all US spot Bitcoin exchange-traded funds (ETFs) has exceeded $58 billion, reflecting significant investment capital inflows into the products. This represents an impressive 4.21% of all coins in the crypto world. Crypto.com's CEO Kris Marszalek, speaking out on CNBC, announced that BTC's current rise was caused by the influx of funds into Bitcoin ETFs. He also reminded everyone about such periods as December 2020 and January 2021, when the market was experiencing a similar situation. He also noted that “the ongoing correction in the price of Bitcoin is healthy and necessary.”
However, JPMorgan analysts believe that the influence of ETFs on BTC is a bit overestimated. In their opinion, “the increase in interest in spot Bitcoin ETFs is due to the expectation of a reallocation of existing capital.” Crypto exchanges saw a cumulative Bitcoin outflow of around $7 billion since the spot Bitcoin ETF launch. ‘It is more likely that the net flow from retail investors into the newly created ETFs is closer to $2 billion,” analysts said.
