Bitcoin (BTC) Price Near $70K as Pro-Crypto Pledges Spark Market Rally

Bitcoin (BTC) price is nearing the $70,000 mark as pro-cryptocurrency pledges from politicians spark a market rally.

CoinShares reported on March 2 that digital asset investment products saw net inflows of $245 million last week.

According to the company’s weekly fund flows report, the trading volume for exchange-traded products (ETPs) rose to its highest level since May, at $14.8 billion, thanks to the launch of spot Ethereum ETFs in the US.

Total assets under management for crypto ETPs increased to $99.1 billion, and their year-to-date inflows reached a record $20.5 billion.

Bitcoin enjoys renewed confidence

With the recent discussion on making Bitcoin a reserve asset for the US government, the asset enjoyed inflows of $519 million last week, bringing its total inflows for the month to $3.6 billion and for the year to $19 billion.

According to CoinShares, the inflows come amid renewed confidence in the asset, which was a topic of conversation at the Bitcoin conference in Nashville.

During the conference, several US politicians, including Republican Presidential Candidate Donald Trump and pro-Bitcoin Senator Cynthia Lummis, shared their plans for crypto.

Among other things, Senator Lummis proposed a plan to establish a 1 million BTC strategic reserve for the US over five years, while Trump vowed to make the US “a Bitcoin superpower” and ensure the government never sells the 210,000 BTC it already holds.

CoinShares also noted that the inflows for Bitcoin were the highest since December 2023, while the total inflows for digital asset investment products year-to-date now stand at $20.5 billion.

Meanwhile, the debut of Ethereum ETFs resulted in the largest inflows for the digital asset since December 2020. According to the CoinShares report, the products saw inflows totaling $2.2 billion, which resulted in a 542% increase in trading volumes.

However, CoinShares Head of Research James Butterfill noted that “This figure is somewhat controversial as Grayscale seeded its new Mini Trust ETF (the week prior) with capital from its incumbent closed-end trust ($1 billion), which may help explain the steady stream of outflows in recent years.”

He also noted that the flows were impacted by Grayscale’s existing ETHE fund, which saw $1.5 billion in outflows, leading to a net outflow of $285 million for Ethereum ETPs.

According to Butterfill, these outflows were similar to those seen in the firm’s Bitcoin trust in January 2024 after the Securities and Exchange Commission (SEC) approved the ETFs for trading.

The above is the detailed content of Bitcoin (BTC) Price Near $70K as Pro-Crypto Pledges Spark Market Rally. For more information, please follow other related articles on the PHP Chinese website!