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BlackRock Submits Spot Bitcoin ETF How the U.S. Investment Market Responds
Author: Alex Lari, BITCOIN NEWS; Compiler: Songxue, Jinse Finance
According to a report by analytics firm K33 Research, a surge in U.S. investor interest in bitcoin has coincided with an increase in institutional activity.
Institutional Investors Drive Bitcoin Price Up
A surge in interest from U.S. investors has pushed the price of the largest digital asset by market capitalization to its highest level in 2023.
It’s worth noting that recent data from **K33 Research shows that Bitcoin’s price gains and trading volumes are mostly concentrated during U.S. market hours, making them the main catalysts for Bitcoin’s strength. **
According to TradingView, Bitcoin has experienced an impressive 90% gain this year, outpacing the performance of most digital asset markets. The price surge coincided with the participation of influential financial players such as BlackRock, Fidelity and Citadel, making investors optimistic about Bitcoin's prospects.
Bitcoin Daily Price Chart – 2023 Source: TradingView
However, a small number of digital assets face challenges due to increased regulatory scrutiny of digital assets classified as unregistered securities. Therefore, trading platforms are taking precautionary measures by limiting the availability of these tokens to reduce potential risks.
K33 Research Report
Recent data from K33 Research shows that since Bitcoin’s cumulative gains calculated by trading hours bottomed out at $16,000, it has risen sharply by about 30% in U.S. market hours, surpassing its performance in Asian and European trading hours.
**The surge in bitcoin trading activity in the US market was triggered by the June 14 filing of a spot bitcoin ETF by prominent asset manager BlackRock. **
Bitcoin Cumulative Returns by Trading Session Source: K33 Research
K33 highlighted the apparent decoupling between Bitcoin's recent surge and the performance of U.S. stock markets, including the S&P 500 and Nasdaq. The 30-day correlation between Bitcoin and these indices turned negative last week for the first time since January 2021, K33 reported.
The move by BlackRock sparked new institutional activity in the bitcoin market. Open interest in the Chicago Mercantile Exchange futures market, the platform of choice for established investment firms, is near an all-time high, the data showed.
Digital asset funds experienced a massive inflow of $199 million last week, the highest amount in nearly a year, according to a CoinShares report. Notably, bitcoin-focused funds received the lion’s share of these inflows, accounting for 94% of the total.
As highlighted by Samir Kerbage, chief investment officer at digital asset management firm Hashdex, the recent surge in crypto market activity suggests institutional adoption of Bitcoin is at a turning point. **
In short,** we may be at a generational moment for individual cryptocurrency investors, he said. ** The institutional interest we are currently seeing is a far cry from the opportunistic FOMO we have seen in the past that can drive prices higher in the short term. These institutions move slowly and carefully, and invest for the long term -- and once they're in, they're in it.