In a remarkable surge, Bitcoin (BTC) has achieved an eagerly awaited all-time high, surpassing $69,000 on Tuesday, two months after the approval and launch of ten spot Bitcoin ETFs. The swift ascent prompts speculation about ETFs’ pivotal role in hastening this milestone.

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• Bitcoin reaches a new all-time high above $69,000, just two months after the introduction of spot Bitcoin ETFs.
• Experts weigh in on the accelerated cycle, asserting that while the high would have occurred without ETFs, their presence has played a pivotal role.
• Institutional investors, geopolitical factors, and the convenience of ETFs contribute to the cryptocurrency’s surge.

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Bitcoin Hits New Record, ETFs Boost Acceleration, Experts Weigh In

Seth Ginns, CoinFund’s managing partner and head of liquid investments, shared insights, asserting that while the all-time high would eventually occur without ETFs, their introduction has likely expedited the cycle. Ginns emphasized the impact of ETF flows on this accelerated trajectory.

Despite Grayscale’s GBTC witnessing a reduction of over 200,000 bitcoins in holdings post-ETF launches, data from BitMEX reveals that spot funds, on a net basis, have accumulated nearly 163,000 tokens. Notably, BlackRock’s IBIT and Fidelity’s FBTC collectively hold over 196,000 bitcoins, underscoring the substantial presence of institutional players in the crypto space.

Jim Iuorio, Managing Director of TJM Institutional Services, and a seasoned futures and options trader, expressed his view that the ETF introduction served as a significant tailwind. Iuorio suggested that the recent rally is not solely ETF-driven but also influenced by broader geopolitical factors. This includes anticipation of the U.S. Federal Reserve lowering benchmark interest rates and the conclusion of the Bank Term Funding Program, an emergency measure implemented in 2023 to avert a potential banking crisis.

“The bid in all of crypto is a ‘no confidence’ vote for the stewardship of fiat currencies and the potential for the Fed to restart quantitative easing and accommodative policy to assist in a pinch,” explained Iuorio.

While Bitcoin has witnessed a 50% rally since ETFs’ introduction in January, additional momentum came in 2023. Factors contributing to this include BlackRock’s announcement in June of its intention to launch a spot fund and Grayscale’s legal victory challenging the SEC’s rejection of its spot ETF aspirations.

Nate Geraci, President of the ETF Store, emphasized the role of ETFs, stating, “While likely multiple factors are driving the price of bitcoin right now, there is no question ETFs are playing a starring role.” He highlighted the convenience of the ETF wrapper, unlocking a significant new source of demand from retail investors, advisors, and institutions who prefer the streamlined approach over buying bitcoin directly from crypto exchanges.

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