Bitcoin ETF Holders Return to Profit as Price Climbs Toward $87,000
Bitcoin ETF holders back in profit for first time since January
Bitcoin exchange-traded fund (ETF) investors are back in profit after months of losses. An ETF is a fund that trades on stock exchanges and tracks the price of Bitcoin, allowing people to invest without buying the cryptocurrency directly.
According to Bloomberg ETF analyst James Seyffart, the price rally on Monday put the average investor above the estimated ETF cost basis of $81.72 for the first time since January. Bitcoin was trading close to $86,772 on Monday, having climbed as high as $86,837 earlier in the day. Bitcoin Magazine reported Bitcoin crossed $87,000 during the day.
The cryptocurrency remains over 30% below its all-time high of $126,080 set last year.
Strong investor inflows return to Bitcoin ETFs
U.S. Bitcoin ETFs, managed by firms including BlackRock, Fidelity, Grayscale, and Morgan Stanley, attracted net positive flows of over $6 million last week. Investors poured nearly $593 million into the funds on Thursday and Friday alone, according to Farside Investors data.
The funds currently manage a total of $98.8 billion in assets, according to Coinglass data.
What pushed Bitcoin higher
Bitcoin began rallying in August after the Treasury Department said it would double the size of its long-dated bond buybacks, posting its best weekly performance since 2023. The cryptocurrency had earlier fallen sharply after the biggest liquidation event in crypto history saw over $19 billion in bets closed.
Despite the Federal Reserve raising interest rates and signaling it was in no hurry to lower them, Bitcoin has continued climbing. The Clarity Act, a key crypto legislation, was blocked in Congress last week, but that did not stop the rally.
The Securities and Exchange Commission approved Bitcoin ETFs to trade in the U.S. in 2024, and the launch was the most successful in the history of investment funds.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.
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