Bitcoin exchange-traded funds have maintained their positive momentum, drawing in billions of dollars in fresh investments over the last week. U.S. investors have allocated $2.56 billion since last Monday, as reported by Farside Investors data, contributing to an increase in the price of the leading cryptocurrency. This week, approximately $652 million in new capital has flowed into the products overseen by prominent firms such as BlackRock, Morgan Stanley, and Fidelity. Bitcoin was recently trading for $78,302 after experiencing an increase of nearly 25% over a seven-day period. The coin reached a peak of $81,160 on Monday.
Bitcoin’s ascent follows a lacklustre performance in June and July, during which it predominantly traded beneath $65,000. The cryptocurrency has gained from reports indicating that the Treasury plans to at least double the scale of its liquidity-support buyback operations. The announcement last week negatively impacted the dollar; however, non-yielding assets such as Bitcoin and gold have experienced gains as a result. Analyst Eric Balchunas noted on X Wednesday that the debasement trade had returned. “Gold and Bitcoin ETFs have combined for over $7 billion in flows in the past week, marking a significant record for a 5-day period as the debasement trade takes precedence over AI,” he stated.
The debasement trade refers to the practice where investors acquire an asset as a safeguard against the depreciation of a currency. Investments such as Bitcoin and precious metals have performed favourably within the market, as they are not subject to infinite production. Last year, the investment strategy garnered significant attention; however, it subsequently faded from discussions as investors shifted their focus toward acquiring equities related to artificial intelligence. Investors are currently expressing concerns regarding U.S. borrowing levels, the depreciation of the dollar, and the measures being taken to manage long-term yields.
Bitcoin ETFs experienced their most significant week since October last week, attracting nearly $2 billion in inflows. Positive regulatory developments from the White House have also stimulated a surge in trading activity. President Donald Trump convened a meeting with cryptocurrency executives earlier last week, subsequently urging lawmakers to advance the long-anticipated crypto Clarity Act to completion.
