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The altcoin market is on fire! Fueled by a surge in value and a decline in Bitcoin dominance, altcoins are experiencing a red-hot rally. The total market cap of altcoins has skyrocketed 15% in just two weeks, reaching a staggering $1.156 trillion. But what’s driving this insane surge? Let’s find out.
Bitcoin ETFs Drive Market Growth
In a historic milestone for the cryptocurrency market, Bitcoin ETFs in the United States have seen an influx of over $2 billion in the past two weeks. A record-breaking $1 billion was received last week, with $305 million on May 21 alone. Bitcoin ETFs, which track the price of Bitcoin and are traded on conventional exchanges like the NYSE, offer investors exposure to Bitcoin without needing to hold the cryptocurrency directly.
According to data from Farside, U.S. spot Bitcoin ETFs experienced net inflows of approximately $252 million on May 24, marking the 10th consecutive trading day of net inflows. Specifically, BlackRock’s IBIT saw an inflow of $182 million, Fidelity’s FBTC received $44 million, Bitwise’s BITB attracted $6.4 million, and the ARK 21Shares Bitcoin ETF saw an inflow of $4 million.
Analyst Insights: Lark Davis’s Bold Predictions
Bitcoin is going to $150,000.
— Lark Davis (@TheCryptoLark) May 27, 2024
Ethereum is going to $15,000.
Here's why:…
Crypto influencer Lark Davis in his X post has predicted substantial price increases for Bitcoin and Ethereum, forecasting Bitcoin to reach $150,000 and Ethereum to hit $15,000. Davis noted this trend as a growing impact of Bitcoin ETFs, which are already drawing hundreds of millions of dollars in daily inflows. He expects a similar trend for Ethereum ETFs, which will soon start trading.
According to a report by Kaiko analysts, Grayscale can be a game changer for ETH ETFs similar to BTC ETFs. Grayscale’s upcoming spot Ether (ETH) ETF could see daily outflows of around $110 million if it follows the same trend as the Grayscale Bitcoin Trust (GBTC) did when it converted to an ETF. After the conversion on January 11, GBTC experienced a 23% outflow of its assets, amounting to $6.5 billion in the first month.
Davis expects regular investors, institutional buyers, wealth managers, pension funds, and countries to invest billions in these ETFs daily as the bull market peaks. Capital inflow is projected to raise prices. He says ETF-driven investments would drive Bitcoin and Ethereum prices up since market sentiment is not bullish enough considering their growth potential.
Interestingly, first-quarter reports revealed that over 20% of exposure to US spot Bitcoin ETFs was held by large investors and institutions with assets exceeding $100 million. This includes large hedge funds, banks, and even the state of Wisconsin’s pension fund, underscoring the growing institutional interest in Bitcoin ETFs and a sign that ETH ETFs will see a similar fate.
While ETH ETFs have yet to launch, speculation is that they may reverse BTC ETF inflows and make altcoin history. Agree?