Bitcoin ETF Flows Rise as BTC Hits $1T Market Cap

As a large-cap U.S. stock, Bitcoin would be a top-10 S&P 500 holding.

Bitcoin's market valuation topped $1 trillion on Wednesday for the first time since November 2021 as U.S. spot bitcoin ETFs supported prices with significant inflows.

BlackRock's iShares Bitcoin Trust (IBIT) saw approximately $700 million in weekly inflows, trailing only the Invesco QQQ Trust (QQQ) and the Vanguard 500 Index Fund (VOO).

Increasing optimistic sentiment surrounding the largest cryptocurrency in market value drove spot bitcoin ETF inflows. According to CoinGecko, BTC's price hovered at $52,000 on Wednesday, up more than 18% in seven days. IBIT was up over 20% in the previous month and about 5% above its Tuesday closing price as of noon Wednesday (EST).

The futures-based ProShares Bitcoin Strategy ETF (BITO) launched in November 2021, and bitcoin achieved its all-time high of $69,000. Many experts expect spot bitcoin ETFs from BlackRock and Fidelity to boost bitcoin, with CryptoQuant estimating it may reach $100,000 in 2024.

On Wednesday, Coindesk reported that positive feeling about bitcoin's development has crypto traders aiming $64,000 and potentially $75,000 in the next months as spot bitcoin ETF demand develops.

Halvings, which occur every four years in the Bitcoin protocol, limit bitcoin supply for new investors. By halving the rate at which new bitcoins are generated, the overall supply approaches 21 million, providing scarcity that is crucial to its value.

The April halving will lower the BTC network transaction validation reward from 6.25 to 3.125 bitcoin.

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