Bitcoin exchange-traded funds have attracted more than $1 billion in new investments in the last three days, contributing to the surge of the leading cryptocurrency to almost $73,000. On Wednesday, investors acquired more than $500 million in shares from the funds overseen by BlackRock, Fidelity, and Greyscale, as reported. Bitcoin’s price has surged this week, reaching $72,659 on Thursday before experiencing a slight decline. It was recently priced at 72,606, reflecting a 10% increase over the past 24 hours. Bitcoin is presently slightly more than 40% beneath its October peak of $126,080.
On Wednesday, President Trump convened a meeting at the White House with cryptocurrency executives, including Coinbase CEO Brian Armstrong, alongside regulators such as Securities and Exchange Commission Chair Paul Atkins. At a conference following the event, the president characterised the Clarity Act as a “very, very powerful” piece of legislation and called on lawmakers to advance its passage. The crypto market structure bill received approval from the House of Representatives last year; however, it has predominantly been stalled this year. Some lawmakers anticipated a vote in August; however, it will now proceed in September.
Crypto businesses have consistently advocated for clear regulations within the industry; the Clarity Act seeks to create a framework for differentiating between digital assets categorised as securities, commodities, or payment stablecoins. The majority of this week’s investment has been absorbed by BlackRock’s iShares Bitcoin Trust, which has garnered $588.5 million since Monday. Other funds, such as Morgan Stanley’s Bitcoin Trust, also witnessed considerable trading activity. The surge in purchasing activity follows a period in which investors withdrew more than $385 million from U.S. funds, prompted by a resurgence of tensions in the Middle East.
The price subsequently exhibited relative stability, notwithstanding the ETF redemptions. Investors may be feeling optimistic following the Treasury Department’s announcement on Wednesday regarding a significant increase in the scale of its government debt repurchases. Lower long-term yields diminish the opportunity cost associated with holding non-yielding assets such as bitcoin and gold, thereby generally fostering a risk-on sentiment. Both experienced significant increases as the dollar depreciated following the announcement.
