U.S. Bitcoin exchange-traded fund investors are back in profit after Bitcoin’s latest rise, according to Bitcoin Magazine.
On Monday, Bloomberg ETF analyst James Seyffart wrote on X that the New York morning rally had pushed the average investor above the estimated ETF cost basis for the first time since January. The report listed that estimated ETF cost basis as 81,72.
Bitcoin moved above $86,000 even after the Clarity Act, a key crypto bill, was blocked last week and the Federal Reserve raised interest rates. The cryptocurrency was recently trading near $86,772 after reaching as high as $86,837 earlier in the day. Bitcoin Magazine also posted on X: 「JUST IN: $87,000 Bitcoin」.
Even with the rebound, Bitcoin remains more than 30% below the all-time high of $126,080 that it reached last year, based on figures cited in the report.
U.S. Bitcoin ETFs saw net inflows last week
The article said U.S. Bitcoin ETFs managed by firms including BlackRock, Fidelity, Grayscale, and Morgan Stanley recorded more than $6 million in net positive flows last week.
According to data from Farside Investors, buyers returned on Thursday and Friday, putting nearly $593 million into the funds across those two sessions.
From the August rally to the October peak and selloff
Bitcoin began rallying in August after the U.S. Treasury Department said it would at least double the size of its long-dated bond buybacks, the report said. It then posted its best week since 2023.
Bitcoin later reached an all-time high in October, but that run ended later in the same month after what the article described as the biggest liquidation event in crypto history wiped out more than $19 billion in bets.
The decline continued after the Federal Reserve made clear it was in no rush to cut interest rates, while investors increasingly directed capital into artificial intelligence-related stocks.
Bitcoin Magazine said Bitcoin has since held up despite news of a hawkish pivot by the Federal Reserve, with investors returning to what the report called the debasement trade.
ETF assets stand at $98.8 billion
The U.S. Securities and Exchange Commission approved Bitcoin ETFs for trading in the United States in 2024. The report said the products went on to deliver the most successful launch in the history of investment vehicles.
For investors who had avoided buying Bitcoin because of the complexity of cold storage and private keys, the ETFs offer listed shares that trade on stock exchanges and track Bitcoin’s price.
According to Coinglass, the funds, run by major Wall Street asset managers, currently hold $98.8 billion in assets under management.
The article first appeared in Bitcoin Magazine and was written by Mathew Di Salvo.