Bitcoin exchange-traded fund investors have returned to profitability as the cryptocurrency's price surge lifted holdings above the estimated average ETF cost basis of $81.72 for the first time since January, according to Bloomberg ETF analyst James Seyffart.
Bitcoin traded near $86,772 on Monday, climbing despite recent headwinds including the blocking of the Clarity Act crypto legislation and Federal Reserve interest rate increases. The price remains over 30% below the all-time high of $126,080 reached in the previous year.
U.S. Bitcoin ETFs managed by firms including BlackRock, Fidelity, Grayscale, and Morgan Stanley attracted net positive flows exceeding $6 million last week. Investor demand intensified Thursday and Friday, when nearly $593 million in new capital flowed into the products, according to Farside Investors data.
Bitcoin's recovery follows a turbulent period marked by a major liquidation event in October that resulted in over $19 billion in closed positions. The cryptocurrency subsequently declined as the Federal Reserve signaled reluctance to lower interest rates and investor attention shifted toward artificial intelligence-related stocks.
The Securities and Exchange Commission approved Bitcoin ETFs for U.S. trading in 2024, enabling investors to gain exposure to the asset through traditional stock exchanges without managing private keys or cold storage. The ETFs currently manage $98.8 billion in total assets, according to Coinglass data.
