Bitcoin exchange-traded funds brought in more than $1 billion in fresh money over the past three days, helping lift bitcoin close to $73,000.
On Wednesday alone, investors bought more than $500 million of shares in funds managed by BlackRock, Fidelity, and Grayscale, according to data from Farside Investors cited in the report.
Bitcoin rose this week and briefly touched $72,659
Bitcoin surged over the course of the week and reached $72,659 on Thursday before slipping slightly. It was recently trading at $72,606, up 10% over 24 hours.
The report added that bitcoin is still a little more than 40% below its October record of $126,080.
Bitcoin Magazine also said on social media that bitcoin had officially moved out of the "Fear" zone in the Fear & Greed Index.
Trump met crypto executives and regulators at the White House
President Donald Trump held a meeting at the White House on Wednesday with crypto executives including Coinbase CEO Brian Armstrong, along with regulators such as Securities and Exchange Commission Chair Paul Atkins.
Speaking at a press conference afterward, Trump called the Clarity Act a "very, very powerful" piece of legislation and urged lawmakers to pass it.
The crypto market structure bill passed the House of Representatives last year, but the report said it has remained largely deadlocked this year. Some lawmakers had hoped for a vote in August, though that is now expected to move to September.
Crypto companies have long pushed for clearer rules. The Clarity Act is intended to create a framework for separating digital assets into securities, commodities, or payment stablecoins.
BlackRock led the week’s inflows
The biggest share of this week’s investment went to BlackRock’s iShares Bitcoin Trust, which has taken in $588.5 million since Monday.
Other products also saw heavy activity. The report said Morgan Stanley’s Bitcoin Trust recorded significant trading action as well.
Treasury buyback plan added to the risk-on mood
Investor sentiment may also have been lifted by a U.S. Treasury Department announcement on Wednesday that it would more than double the size of its government debt repurchases.
According to the report, lower long-term yields reduce the opportunity cost of holding non-yielding assets such as bitcoin and gold, and usually support risk appetite. After the announcement, the dollar weakened and both bitcoin and gold moved higher.