Bitcoin rallied to its highest price since December 2021 Monday as the world’s top cryptocurrency cleared the $50,000 price level for the first time in over two years. The move triggered a rally for cryptos and related stocks. Coinbase stock and bitcoin ETFs surged while bitcoin miner Marathon Digital (MARA) vaulted.
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Bitcoin traded above $50,200 Monday afternoon after briefly hitting $50,314 in the morning — its highest level since December 2021. Bitcoin had spiked to $49,000 Jan. 11 on the ETF launch day but then fell back into its early December 2023 level prior to the SEC announcement. Still, BTC is up more than 18% so far this year.
Ethereum hovered near $2,650 at four-week highs and is up 15% so far in 2024.
Crypto exchange Coinbase (COIN) surged 3.8% Monday to push back above its 50-day moving average. Marathon Digital stock bolted 14.2% back near late December highs.
Bitcoin ETF Performance
Meanwhile, spot bitcoin ETFs jumped more than 5.5% during trade, after adding around 4% Friday.
BlackRock‘s (BLK) iShares Bitcoin Trust (IBIT) has been the clear leader in fund inflows since the spot bitcoin ETFs launched Jan. 11 with roughly $3.75 billion in inflows as of end of day Feb. 9, according to BitMEX Research data. The Fidelity Wise Origin Bitcoin Fund (FBTC) ranks second at $3 billion in inflows. The ARK 21Shares Bitcoin ETF (ARKB) on Friday overtook Bitwise Bitcoin ETF (BITB) in terms of inflows. ARKB has recorded $918.5 million in total inflows as of Feb. 9 while BITB recorded $785.8 million.
Grayscale Bitcoin Trust (GBTC) recorded about $6.38 billion in outflows as of Feb. 9, which have steadily slowed. Still, Grayscale remains the leader in terms of assets, with $22.12 billion in assets under management, followed by iShares Bitcoin Trust at $4.18 billion.
Despite GBTC’s outflows, the new ETFs have recorded $2.65 billion in inflows since launch, according to BitMEX research.
Room To Run
Other trends are set to drive bitcoin in 2024, including the upcoming halving event in April and influx of institutional participation, expected as the result of the ETF launch.
The most important factor, though, will be mainstream adoption, according to Joel Kruger, market strategist at LMAX Group.
“Now that the bitcoin spot ETFs have been approved, more of an effort will be made from traditional institutions to promote bitcoin’s value proposition,” Kruger told IBD.
But we still have yet to see the full force of institutional inflows, says Kyle DaCruz, Director of Digital Assets Products at VanEck. VanEck launched its spot bitcoin ETF, the VanEck Bitcoin Trust (HODL) on Jan. 11. HODL recorded more than $75.5 million in inflows since launch and has $161.7 million in assets under management as of Feb. 9, according to BitMEX.
A majority of financial advisors don’t have access to the ETFs yet because a lot of the platforms require due diligence and other parameters to be met, which can typically take months, DaCruz told IBD. “I think when that changes, then you’re talking about the true unlock of that multitrillion dollar FA chattel,” he said.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
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