The altcoin market is on fire! Fueled by a surge in value and a decline in Bitcoin dominance, altcoins are experiencing a red-hot rally. The total market cap of altcoins has skyrocketed 15% in just two weeks, reaching a staggering $1.156 trillion.
But what’s behind this explosive surge? Let’s dig in.
In a historic milestone for the cryptocurrency market, Bitcoin ETFs in the United States have seen an influx of over $2 billion in the past two weeks. A record-breaking $1 billion was received last week, with $305 million on May 21 alone. Bitcoin ETFs, which track the price of Bitcoin and are traded on conventional exchanges like the NYSE, offer investors exposure to Bitcoin without needing to hold the cryptocurrency directly.
Data from Farside shows that U.S. spot Bitcoin ETFs saw net inflows of approximately $252 million on May 24th, marking the 10th consecutive trading day of such inflows. Notably, BlackRock’s IBIT led the pack with an inflow of $182 million, followed by Fidelity’s FBTC with $44 million, Bitwise’s BITB with $6.4 million, and the ARK 21Shares Bitcoin ETF with an inflow of $4 million.
Leading crypto influencer Lark Davis has made some bold predictions. He foresees significant price hikes for both Bitcoin and Ethereum, with Bitcoin potentially reaching $150,000 and Ethereum hitting $15,000.
Davis attributes this surge to the growing influence of Bitcoin ETFs, which are already attracting hundreds of millions of dollars in daily inflows. He anticipates a similar trend for Ethereum ETFs, which are set to debut soon.
According to a report by Kaiko analysts, Grayscale’s upcoming spot Ether (ETH) ETF could be a game-changer, akin to BTC ETFs. If it follows the path of the Grayscale Bitcoin Trust (GBTC) during its transition to an ETF, it could see daily outflows of around $110 million. GBTC experienced a significant 23% outflow, amounting to $6.5 billion in the first month post-conversion on January 11th.
Davis predicts that as the bull market peaks, various investors, including regular investors, institutions, wealth managers, pension funds, and even countries, will pour billions into these ETFs daily, driving prices up. He argues that ETF-driven investments will push the prices of Bitcoin and Ethereum higher, as the current market sentiment doesn’t fully reflect their growth potential.
First-quarter reports reveal an interesting trend: over 20% of exposure to U.S. spot Bitcoin ETFs came from large investors and institutions with assets exceeding $100 million. This includes major hedge funds, banks, and even the state of Wisconsin’s pension fund. This underscores the increasing institutional interest in Bitcoin ETFs and suggests a similar pattern for ETH ETFs.
While ETH ETFs have yet to launch, speculation is that they may reverse BTC ETF inflows and make altcoin history. Agree?
Also Check Out : Mt. Gox Transfers $840M in Bitcoin Ahead of Creditor Payout: BTC Price to Drop?
Don’t miss the boat! Dive deeper into the altcoin market and discover your next investment opportunity.
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