Bitcoin ETFs Draw Billions In New Investment

Bitcoin exchange-traded funds have continued their winning streak, attracting billions of dollars in new investment over the past week. 

U.S. investors have thrown $2.56 billion since last Monday, according to Farside Investors data, helping push the leading cryptocurrency’s price higher. 

And this week alone, nearly $652 million in fresh cash has hit the products managed by the likes of BlackRock, Morgan Stanley, and Fidelity. 

Bitcoin was recently trading for $78,302 after jumping nearly 25% over a seven-day period. The coin touched as high as $81,160 on Monday. 

Bitcoin’s rise comes after a sluggish June and July when it mostly traded below $65,000. 

The cryptocurrency has benefited from news that the Treasury would at least double the size of its liquidity-support buyback operations. The announcement last week hurt the dollar but non-yielding assets like Bitcoin and gold have benefited.  

Bloomberg Intelligence ETF Analyst Eric Balchunas wrote on X Wednesday that the debasement trade was back.

“Gold and Bitcoin ETFs have combined for +$7b in flows in past week, by far a record for a 5-day period as debasement trade steals spotlight from AI,” he said. 

The debasement trade is when investors buy an asset to hedge against a currency losing value. Investments like Bitcoin and precious metals have done well as part of the trade as they cannot be endlessly printed.