Bitcoin (BTC-USD) soared above $47,000 on Friday afternoon for the first time since the introduction of spot ETFs, after the U.S. Securities and Exchange Commission approved 11 exchange-traded funds last month. Yahoo Finance market reporter Jared Blikre breaks down the details and provides insight into what’s driving the rally.
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Editor’s note: This article was written by angel smith
Julie Hyman: Jared Bricle comes in a trade. We’re talking about Bitcoin for the second day in a row, Jared.
Jared Breichle: How about that? How special have we become? Bitcoin is heading towards 50,000. We are not there yet. There are thousands more. Here is the 3 month chart. I show this because even when Bitcoin has broken above here since early December, it has mostly been locked within its trading range. And this was Bitcoin ETF’s “sell the news” moment. It was very short and lasted only a few days. This and similar failures lasted only a few days. And here we are.
What I like about this chart is that price seems to be very comfortable around this area, which was previously quickly rejected. As we move higher here and approach 50,000, I would like to see if that price level is accepted or rejected. And when that is rejected, you get either a big tail, a wick, or a shadow, as the term goes. But why this level? That’s because we have a price memory going back to 2022. What happens if we clear 50,000? Now we have 55,000. So here’s one step at a time.
I’d also like to take this opportunity to review some of the flows we’ve seen in some of these spot Bitcoin ETFs. It was very interesting, 10 overall. In terms of volume, both top and bottom prices are in the top five. A particular standout here is the Grayscale Bitcoin Trust. This resulted in the loss of more than $6 billion in financial flows. It has an overwhelming amount of assets. Founded in 2013, the management fee is still 1.5%. However, much of this flow went to competitors.
IBIT (iShares’ service) has flows worth $3.5 billion. And Fidelity is pretty much following suit. So while we have to see all this swinging settle down, the reality is that many of these issuers will be putting everything into spot Bitcoin ETFs. I would like to mention that the iShares product is one of the top 10 Bitcoin ETFs in terms of flows this year. That’s quite a bit.