Investors are placing money in spot Bitcoin (BTC) exchange-traded funds (ETFs) at the fastest rate since Donald Trump’s election victory last fall.
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Market data shows that U.S.-listed spot Bitcoin ETFs registered cumulative net inflows of $802 million over the past week. BlackRock’s iShares Bitcoin Trust ETF (IBIT) attracted $661.8 million of that money as investors continue to focus on cryptocurrencies as Trump returns to power.
Additionally, digital wallets with a history of holding Bitcoin for more than 155 days are now scaling back their profit-taking activities, according to blockchain data tracking firm Glassnode. Flows into spot Ethereum ETFs are also on the rise, gaining a net $74 million in the last five trading sessions.
Bullish Option Bets
At the same time that ETF inflows are growing, traders have been buying an increasing number of call options on Bitcoin, which are bullish bets that the price will rise. Data shows that the number of call options on Bitcoin are now at their highest level since the U.S. election on Nov. 5.
Analysts say that the options activity shows bullish sentiment gathering around Bitcoin, with traders positioning for upside exposure to crypto. The bullish activity comes with Bitcoin’s price moving erratically in recent days, though it is down from a record high above $109,000 reached on Jan. 20, the day of Trump’s inauguration.
However, some analysts say investors and traders appear to be taking advantage of the pullback and positioning themselves for the next leg up in BTC.
Is BTC a Buy?
Most Wall Street firms don’t offer ratings or price targets on Bitcoin, so we’ll look at the cryptocurrency’s three-month performance instead. As one can see in the chart below, the price of BTC has risen 52.24% in the last 12 weeks.
