Almost $10 Billion Invested In US Bitcoin ETFs
Roughly $10 billion has flooded into U.S. spot Bitcoin in just over a month since Donald Trump was elected president ETFshowing increasing optimism that his government will support the cryptocurrency industry.
according to According to Bloomberg, more than a dozen funds from large issuers such as BlackRock and Fidelity Investments have received about $9.9 billion in net inflows into their various Bitcoins since November 5. cryptocurrency ETF, bringing its total assets to approximately $113 billion.
Trump’s appointment signals shift in favor of cryptocurrency regulation
Trump’s recent picks, such as digital asset champions lead The establishment of the U.S. Securities and Exchange Commission (SEC) and the White House’s AI and cryptocurrency czar are signs that the regulatory environment is shifting in a friendlier direction.
Notably, Trump praised the concept of a national Bitcoin reserve, which is gaining bipartisan support in Congress, Senators who support cryptocurrencies Starring Cynthia Lummis.
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Bitcoin recently surpassed the $100,000 mark for the first time on December 5 and was trading around $96,898 as of Monday. The cryptocurrency’s six-week winning streak comes since 2021 market frenzyBut analysts remain concerned about volatility.
David Lawant, head of research at top cryptocurrency broker FalconX, noted that a sustained move above the $100,000 milestone will likely require other positive catalysts, as BTC has struggled to regain this level during its stabilization period after rising higher over the past four days.
Bitcoin rally boosts MicroStrategy and peers
Bloomberg also notes The positive vibe surrounding cryptocurrencies has led to a sharp rally in companies that followed MicroStrategy’s strategy of selling convertible bonds to fund Bitcoin purchases.
MicroStrategy alone has sold $6.2 billion in convertible debt this year and plans to raise an additional $21 billion through fixed-income products. Other companies, including MARA Holdings and Core Scientific, have successfully secured significant funding to support their Bitcoin acquisitions.
microstrategic in stockMSTR shares have risen 73% since Donald Trump was elected, while MARA, Riot Platforms and Core Scientific have gained 63%, 33% and 30% respectively.
This trend is very similar to Bitcoin’s nearly 40% growth over the same period. With the market capitalization approaching $2 trillion, Bitcoin’s recent rally has significantly increased MicroStrategy’s assets, which are now worth over $41 billion.
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Recent cryptocurrency-related terms convertible transaction stand out, especially since many are zero-coupon structures that allow investors to engage in convertible arbitrage.
Despite the high demand for these tools, people don’t seem worried about future drops in Bitcoin prices. Raj Imteaz, head of convertible debt and equity derivatives advisory at ICR Capital LLC, noted that larger players in the market feel the need to issue convertible debt to stay competitive.
“If your competitors have a lot of capital funded at very low coupons and you haven’t tapped into the market, you’re at a competitive disadvantage,” he said. “You almost have to issue converts to stay competitive in the cryptocurrency space.”
Featured images from DALL-E, charts from TradingView.com
