Bitcoin surpassed $62,000 today, and it could hit a new all-time high within weeks. The pioneer of digital assets sailed through the historic milestone, edging closer to the previous all-time high of approximately $69,000 on November 10 2021.
If the current momentum continues, Bitcoin could beat the previous all-time high in a matter of weeks, maybe even sooner. A key driver behind Bitcoin’s recent surge is the growing interest and involvement of institutional investors, notably through the introduction of Bitcoin Exchange-Traded Funds (ETFs).
The approval and launch of spot Bitcoin ETFs, which track the price of the cryptocurrency directly rather than futures contracts, have provided institutional investors with a more accessible and regulated means of entering the crypto market, accelerating institutional adoption, and bringing more liquidity and stability to the market.
Massive interest in Bitcoin ETFs
It’s been reported that BlackRock’s Bitcoin ETF took in a staggering $520 million on Tuesday alone – the second biggest inflow in a day of any ETF, anytime, anywhere.
WisdomTree, a global financial innovator, today said that its European physically backed crypto ETP range has surpassed $500m in assets under management. The AuM figure represents an all-time high for WisdomTree’s European crypto ETPs, which has seen net inflows in 2024 of $59m into its range, led by WisdomTree Physical Bitcoin (BTCW).
WisdomTree was the first established ETP issuer to provide European investors with institutional-grade physically backed crypto exposure, following the launch of WisdomTree Physical Bitcoin in December 2019. It now has a thoughtfully curated range of eight physically backed crypto ETPs listed on Deutsche Börse Xetra, the Swiss Stock Exchange SIX, and Euronext exchanges in Paris and Amsterdam, providing European investors with convenient access to crypto in a familiar ETP wrapper.
In January, WisdomTree reduced fees on the WisdomTree Physical Bitcoin ETP alongside the seven other ETPs in its European crypto range, making it amongst the lowest priced crypto ETP ranges in Europe. With a management expense ratio of 0.35%, BTCW has the lowest fee level for institutional-grade physical bitcoin ETPs in Europe that are 100% backed by Bitcoin.
Alexis Marinof, Head Europe, WisdomTree, said: “The launch of spot Bitcoin exchange-traded funds in the US has changed the way many investors look at cryptocurrencies as an investable asset class. As attention turns to the Bitcoin halving expected in April, investors are seeing more potential within the asset class. Bitcoin has been the best performing asset in nine of the last twelve years, and the halving could potentially extend that run.”
Bitcoin undergoes a halving approximately every four years, reducing the rate at which new coins are created by half. The supply of new Bitcoin entering the market decreases, creating a potential supply shock that historically has correlated with significant price increases. The next Bitcoin halving is anticipated in April, and historical data suggests that these events often precede substantial bull runs.
As the issuance of new Bitcoin slows down, the existing scarcity of the digital asset becomes even more pronounced, typically leading to increased demand and, subsequently, higher prices.
Listen: Podcast with Chris Ganatti, WisdomTree
Increased retail interest in Bitcoin
Beyond institutional involvement and the halving hype, the surge in Bitcoin’s price is also being driven by increasing retail interest. The broader acceptance of cryptocurrencies, with major companies now accepting Bitcoin as a form of payment and traditional financial platforms integrating digital assets, is attracting a more diverse range of retail investors.
User-friendly exchanges and mobile apps have made it easier than ever for retail investors to enter the crypto market, contributing to the democratisation of cryptocurrency investing. This combination of institutional and retail interest is creating a dynamic and robust ecosystem that could propel Bitcoin to new heights.
Nothing is for sure, of course, and cryptocurrencies remain highly speculative, but the enormous interest in spot ETFs and the upcoming halving event – which only happens every four years – can be expected to continue to fuel the current momentum which could lead Bitcoin to surpass the $69,000 mark.
