Positive Inflation Boosts Bitcoin ETF Investments, Pushing Price Above $66,000
Positive inflation numbers have bolstered the likelihood of imminent interest rate cuts by the US Federal Reserve. Meanwhile, significant investments in Bitcoin ETFs have been reported by major financial institutions and hedge funds, driving the bitcoin price above $66,000.
The US inflation data for April has increased the chances of future interest rate cuts by the Federal Reserve. This positive news has coincided with substantial investments in bitcoin spot ETFs. Notably, the State of Wisconsin Investment Board (SWIB) became the first US pension fund to invest in these ETFs, holding $163 million worth at the end of March.
Nearly 20% of the total assets in bitcoin spot ETFs were held by companies that disclosed their holdings in the 13F filings. Inflows into these ETFs reached over $725 million in the first four trading days of the week, pushing the bitcoin price usd above $66,000. This surge in investment has been supported by overwhelmingly positive bitcoin news.
Several major financial services companies have invested in bitcoin spot ETFs. Among them are hedge funds like Brevan Howard and Millennium Management, which reported the largest position with around $2 billion. Other notable investors include institutions such as Harvard and BlackRock, with a significant portion of their investments focused on the iShares Bitcoin Trust (IBIT).
The positive inflation numbers and increased investment in bitcoin ETFs have driven the bitcoin price to new heights. With over 405 RIAs and 85 hedge funds managing more than $1 billion each holding bitcoin ETFs, the cryptocurrency's appeal to institutional investors continues to grow. As the Federal Reserve considers interest rate cuts, the bitcoin market remains bullish, with more positive news expected in the coming weeks.
