Bitcoin Investment Surpasses $1 Trillion For The First Time In History

(CTN News) – As inflows to U.S. spot bitcoin exchange traded funds continued to support prices, the total amount invested in bitcoin exceeded $1 trillion on Wednesday for the first time since November 2021.

In an update to the price platform Coingecko, Bitcoin’s price reached $51,606 on Wednesday, its highest price in 25 months. This is a rise of 4.1% on the day, increasing the token’s market cap to $1.005 trillion.

In November 2021, bitcoin’s market capitalization reached a record high of $1.28 trillion, according to Coingecko.

As of early February, Bitcoin had risen around 20% since the beginning of the month, marking its biggest monthly gain since October.

Bitcoin investments account for more than half of the $2.01 trillion parked in the overall cryptocurrency market, including ether and other cryptocurrencies.

New U.S. listed ETFs have driven some of the price action in recent weeks, according to analysts, and capital flows into 11 U.S. spot ETFs increased to $1.64 billion in the week to Wednesday, according to LSEG Lipper data.

In the previous five trading sessions, $409 million was inflowed into the products, which were approved by the regulatory authorities and began trading in January.

Crypto liquidity provider B2C2 analysts stated, “Whether this pace will be sustained remains to be seen, however price is often the primary driver of flow in crypto.”

It is reasonable to expect that if there are more days like the last few, large inflows will be met by further price increases for spot bitcoin.

Before the bell on Wednesday, US-listed cryptocurrency companies also gained, with Coinbase climbing 7%, while Riot Platforms and CleanSpark gained nearly 9% and 16%, respectively.

Despite hitting an all-time high of $69,000 in November 2021, Bitcoin struggled for most of 2022 and the first part of 2023, subjected to tightening monetary policies by global central banks, as well as a number of high profile failures at crypto companies, including the leading exchange FTX.

As a result of the launch of spot bitcoin ETFs and the prospect of a soft landing for the economy in the next few months, sentiment has improved. Investors will be able to gain exposure to bitcoin without holding the underlying asset directly. The ETFs have been touted as a game-changer for the industry, already well known for its appeal to retail traders.

Ether, the second-largest token on the Ethereum network, was up 4.1% at $2,742 on Monday, its highest level since May 2022.

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