Bitcoin rose above $47,000 for the first time since receiving spot ETF approvals

Bitcoin rose above $47,000 for the first time since receiving spot ETF approvals

Bitcoin (BTC-USD) rose above $47,000 on Friday afternoon for the first time since spot ETFs debuted, following the US Securities Commission’s approval last month of 11 spot ETFs. Jared Blecker, Yahoo Finance’s markets news editor, breaks down the details and offers insight into what’s driving the rally.

For more expert insights and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor’s Note: This article was written by Angel Smith

Video version

Julie Heyman: Jared Bleecker here with the trade. We’ve been talking about Bitcoin here for two days in a row, Jared.

Jared Blecker: What about that? How special are we? Bitcoin is heading to 50,000. Not quite there yet. Got a few thousand to go. Here is the three-month chart. I show this because Bitcoin, for the most part, since the beginning of December, has been confined to a trading range, even when it broke above that level. This was the immediate “sell the news” moment for the Bitcoin ETF. It was very short, only lasting a few days. Similar to this crash, it only lasted a few days. And here we are.

What I like about this chart is that the price looks very comfortable around this area which was quickly rejected before. As we head higher here, as we get closer to the 50,000 level, I would want to see if this price level is acceptable or rejectable. And if it gets rejected, you get one of these big tails or wicks or shadows, as the term goes. But why this level? This is because we have price memory here since 2022. If we can liquidate 50,000, guess what? This puts 55,000 inside. So one step at a time here.

I’d also like to take the opportunity to check out some of the flows we’ve seen in some Bitcoin ETFs. It was really interesting, 10 overall. I have the top five positions in terms of volume, both in an uptrend and downtrend. What really stands out here is the Grayscale Bitcoin Trust. This lost over $6 billion in flows. It owns, by far, most of the assets. Founded in 2013. It still has a management fee of 1.5%. But much of these flows went to competitors.

IBIT – that’s the iShares offering – which has $3 and 1/2 billion in inflows. And then Fidelity came close to achieving its goal there. So we’ll have to see all of this change, but in reality it’s all happening in a lot of these issuers of spot Bitcoin ETFs. I would like to mention that iShares offering is one of the top 10 Bitcoin ETFs in terms of flows this year. This is big.

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