According to Reuters, bitcoin has hit another all-time high. The latest rally was driven by the launch of the first BITCOIN futures ETF in the United States, which investors believe will make bitcoin more accessible to a wide range of new investors, but ETF launches are not the only driver of BTC growth.
Prior to the APPROVAL of THE BTC ETF in the U.S., the amount of money flowing into existing Bitcoin ETFs and products were rapidly increasing, according to analysis. Average weekly inflows to bitcoin funds totaled $121.1 million in October, up from $31.2 million a month earlier, according to London-based CryptoCompare.
The previous three months had been marked by outflows, which followed bitcoin’s plunge in May and June. “Bitcoin fell sharply over the summer and has since rebounded from its lows, and anything below $30,000 is considered cheap and attractive to many investors, particularly institutional investors,” said Sui Chung, chief executive of CF Benchmarks, a cryptographic index provider. In addition, some market participants believe bitcoin’s alleged anti-inflation properties have also contributed to the recent rally. Bitcoin is up nearly 85% since the beginning of July.
Some inflation-protected assets have fared better, with inflation-linked bonds — the US Inflation-Protected Securities index — up more than 140 percent, while gold has been flat over the same period.