The price of bitcoin (BTC) once again reached $100,000, driven by a notable inflow of capital into spot exchange-traded funds (ETFs) operating in the United States.
This rally is mainly attributed to the performance of the Fidelity Wise Origin Bitcoin Fund (FBTC), which led the day with revenues of $463 millionaccording to SosoValue data.
FBTC, managed by Fidelity, positioned itself as the main driver of capital inflows into the bitcoin spot ETF market, marking a milestone so far this week.
Since launching in January 2024, the 12 bitcoin-backed ETFs have accumulated a total of 36.48 billion dollars in assets under management.
This flow of capital had an immediate impact on the price of bitcoin, which reached close to $100,000 during the dayalthough it subsequently fell slightly to $98,800, as seen in the following chart. TradingView.
How ETFs influence the price of bitcoin
The positive effect of ETFs on the price of bitcoin is due to the structure of these financial instruments. Spot ETFs are directly backed by the underlying asset, in this case bitcoin.
To support their actions, management companies must buy and hold bitcoin in their treasurieswhich generates direct demand in the market.
This demand reduces the amount of bitcoin available on the open market, a factor that may contribute to a price increase due to the limited nature of bitcoin supply, which is capped at a maximum of 21 million coins.
Market outlook
The performance of spot ETFs reinforces the perception of these instruments as a key vehicle for institutional investment in bitcoin. Its ability to mobilize large volumes of capital and generate impact on the underlying market continues to attract the attention of investors.
As the price of bitcoin shows volatility around the $100,000 mark, the role of ETFs as a catalyst for growth in the cryptocurrency market is consolidated.
