Supporters of Bitcoin also believe that the impending halving event in April 2024 will give the leading cryptocurrency in the world an additional boost.

The bullish momentum of bitcoin

Before experiencing a large fall, the price of Bitcoin (BTC) reached its highest point since 2021 and was almost at its record high of $69,000, which was reached in November 2021. As of the time of publication, the price is still comfortably above the $62,000 range.

Significant money inflows into the global cryptocurrency market, sparked by the long-awaited launch of spot exchange-traded funds (ETFs) for the orange coin in the US, have been largely attributed to Bitcoin's strong positive momentum.

The adoption of these ETFs has drawn institutional investments worth billions of dollars, which has fueled Bitcoin's rapid ascent.

Despite the subsequent volatility, investors remain optimistic due to Bitcoin's resiliency and increased institutional interest.

Ten of the eleven Bitcoin exchange-traded funds (ETFs) that Gary Gensler-led Securities and Exchange Commission (SEC) approved in January are already trading actively and drawing sizable inflows.

The nine recently authorised spot Bitcoin exchange-traded funds (ETFs) in the United States now handle more than 300,000 Bitcoin (BTC), which was worth more than $17 billion at the time the data was gathered, according to K33 data study. Representing a fresh peak for these funds, this amount constitutes roughly 1.5% of the total 19.6 million BTC presently in use.

According to the most recent information available on the GBTC website, Grayscale currently possesses 445,386.8454 Bitcoin, which is worth about $27.61 billion as of this writing. When the assets of Grayscale are added to the recently approved spot Bitcoin ETFs, the total value of the cryptocurrency held by these organisations is estimated to be $43 billion.

Notably, the amount stated does not include Grayscale's holdings, which, after receiving SEC clearance, changed its long-standing Bitcoin Trust (GBTC) into a spot Bitcoin ETF. This is because Bitcoin ETFs are driving investor demand.

Although there is ongoing discussion on how ETFs affect the price of Bitcoin, other variables have also contributed to the asset's strong success thus far.

The iShares Bitcoin Trust (IBIT) saw a spike in trading activity on February 28—about 96 million shares were traded—more than double the record of roughly 43 million shares set on February 27. This information is provided by FactSet.

Due to the fact that investors may now access Bitcoin in a safe and controlled manner, these ETF products have been incredibly popular.

On the other hand, detractors caution that the launch of a Bitcoin ETF would intensify market volatility and speculative trading, resulting in unpredictability. They warn against moving forward due to potential losses for investors, lack of regulation, and market manipulation.