Bitcoin rallied further into two-year highs Wednesday as the world's top cryptocurrency cleared the $51,000 price level for the first time in over two years. The move triggered a rally for cryptos and related stocks. Coinbase stock and bitcoin ETFs surged while bitcoin miner Marathon Digital vaulted.
Bitcoin traded above $51,600 Wednesday, climbing further against levels notched in December 2021. Wednesday's action put Bitcoin's market capitalization back above the $1 trillion mark for the first time in more than two years. BTC is now up more than 22% so far this year.
Ethereum has broken past early January highs to trade at $2,747 — its best mark in eleven months. Ethereum is up 20% so far in 2024.
Crypto exchange Coinbase surged 7.6% early Wednesday, after falling on Tuesday back below its 50-day moving average. Marathon Digital stock bolted 12.8%.
Bitcoin ETF Performance
Meanwhile, spot bitcoin ETFs traded sharply higher in premarket action. The group reported $1.1 billion in inflows for the week ended Feb. 11, according to CoinShares. Feb. 11 also marked the first full month of trade for bitcoin ETFs. Zacks reported the group accumulated $10 billion in assets during the month.
BlackRock's iShares Bitcoin Trust has been the clear leader in fund inflows since the spot bitcoin ETFs launched Jan. 11. The iShares Bitcoin has reported inflows of more than $4.6 billion since Feb. 11, according to data from U.K.-based Farside Investors. iShares Bitcoin Trust rallied 4.6% early Wednesday.
The Fidelity Wise Origin Bitcoin Fund ranks second at $3.3 billion in inflows. FBTC jumped 4.9% early Wednesday.
Grayscale Bitcoin Trust recorded about $6.55 billion in outflows through Feb. 11, which have steadily slowed. Still, Grayscale remains the leader in terms of assets, with $22.83 billion in assets under management. GBTC rallied 4.5% early Wednesday.
Despite GBTC's outflows, the new ETFs have recorded $3.77 billion in inflows since launch, according to BitMEX research.
Room To Run
Other trends are set to drive bitcoin in 2024, including the upcoming halving event in April and influx of institutional participation, expected as the result of the ETF launch.
The most important factor, though, will be mainstream adoption, according to Joel Kruger, market strategist at LMAX Group.
"Now that the bitcoin spot ETFs have been approved, more of an effort will be made from traditional institutions to promote bitcoin's value proposition," Kruger told IBD.
But we still have yet to see the full force of institutional inflows, says Kyle DaCruz, Director of Digital Assets Products at VanEck. VanEck launched its spot bitcoin ETF, the VanEck Bitcoin Trust on Jan. 11. HODL recorded more than $75.5 million in inflows since launch and has $161.7 million in assets under management as of Feb. 9, according to BitMEX.
A majority of financial advisors don't have access to the ETFs yet because a lot of the platforms require due diligence and other parameters to be met, which can typically take months, DaCruz told IBD. "I think when that changes, then you're talking about the true unlock of that multitrillion dollar FA chattel," he said.
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