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Wednesday witnessed an extraordinary surge in interest for the ARK 21Shares spot Bitcoin exchange-traded fund (ETF), with inflows reaching a remarkable US$201.8 million. This surge, nearly five times the ETF's average daily inflows, coincided with Bitcoin's approach to the US$72,000 threshold, underscoring a significant fervor within the cryptocurrency market.
Preliminary data from Farside Investors revealed that the day's inflow was four times higher than the ETF's average daily inflow of US$43.9 million since its inception on January 11. It also marked a substantial rise from the US$73.6 million inflow recorded the day prior, indicating a growing investor interest in Bitcoin despite the absence of inflows on March 25. In contrast, other Bitcoin ETFs experienced notably lower inflows during this period.
The Valkyrie Bitcoin ETF, Invesco Galaxy Bitcoin ETF, Franklin Bitcoin ETF, and VanEck Bitcoin ETF reported inflows within the range of US$1.9 million to US$5.1 million, all in the single digits, with BlackRock's data pending at the time. This surge in interest in the ARK 21Shares Bitcoin ETF occurred concurrently with Bitcoin reaching a peak of US$71,670, although it subsequently declined below the US$69,000 support level, concluding the day at US$69,698.
The investment community has predominantly centered its attention on Bitcoin's short-term price movements. However, crypto analysts advocate for a more comprehensive perspective. Crypto researcher Gumshoe emphasized the limited attention on daily price changes and emphasized the significance of the total inflow of capital into Bitcoin.
Gumshoe, a prominent crypto analyst, contrasted the record-breaking inflows into Bitcoin ETFs with the prevailing panic over the daily close of a price candle.
Matt Hougan, the Chief Investment Officer at Bitwise, shed light on the regulatory hurdles impeding professional investors' access to Bitcoin ETFs, particularly in the UK, due to the Financial Conduct Authority's cautious approach towards digital currencies. Hougan anticipates a gradual transformation over the ensuing two years, attributable to the evolution of due diligence procedures.
Bitcoin Munger, expressing optimism, proposed that the forthcoming US$13 billion in inflows could potentially instigate a substantial increase in Bitcoin's price. This optimistic view is substantiated by a Cointelegraph report, which revealed that US$13.2 billion has been invested in products encompassing spot Bitcoin ETFs since the commencement of the year, thereby indicating a robust appetite for cryptocurrency investment vehicles.
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