BlackRock Exchange Traded Fund (ETF) investing in Bitcoin (BTC) recorded a record 5.$200 million in inflows, the largest one-day inflow of U.S. cross-asset class ETFs so far this year。

This all happens as BTC price tests $64,000, just one step from 2021 all-time high。The market is currently dominated by a speculative frenzy, with "greed" reaching unprecedented levels.。

BlackRock Bitcoin ETF sees record inflows in cryptocurrency rally

BlackRock iShares Bitcoin Trust (IBIT) has seen steady investor demand and has seen inflows for 32 consecutive days。As of Wednesday, nine Bitcoin spot ETFs had a combined trading volume of more than $2.6 billion, with IBIT breaking its own record to reach $1.5 billion.。

Investment in Bitcoin ETF surges as cryptocurrency prices rise across the board。Bitcoin hit a two-year high on Wednesday, close to an all-time record, while other major digital assets such as Ethereum also saw significant gains.。

The successful launch of the Bitcoin Spot ETF in January 2024 opened the door to new investments by wealth managers, hedge funds and retail traders, analysts said.。The convenience of trading BTC through ETFs helps push up its price by stimulating demand。

Joel Kruger, market strategist at LMAX Group, said: "The market is realizing that Bitcoin is now easily accepted by the public, and in terms of mainstream adoption, we are only scratching the surface.。"We also believe that the lower correlation with the U.S. stock market is exciting, which makes Bitcoin more attractive as a portfolio diversified investment."。"

Apparently, the demand for leverage in the cryptocurrency market is affecting the behavior of investors。Rising costs in futures markets and decentralized finance lead to increased demand for crypto lending。

Andrey Stoychev, Nexo project manager, commented: "Investors are increasingly looking for access to liquidity in a high interest rate environment, prompting them to turn to lending platforms that offer loans and futures services in an easy-to-navigate interface.。"The need to borrow in a familiar environment not only reflects the market's ability to adapt to external economic factors, but also leads to a significant trend in the cryptocurrency ecosystem."。"

WisdomTree Europe BTC ETP Managed Assets Over $500

Another exchange-traded vehicle issuer, WisdomTree, reports record results。Its European Cryptocurrency Exchange Traded Products (ETP) assets under management have crossed the $500 million mark.。The figure marks a historic peak for WisdomTree's European cryptocurrency ETP, whose portfolio experienced a net inflow of $59 million in 2024, driven primarily by WisdomTree's physical bitcoin.。

Market experts said the inflows were mainly driven by retail investors rather than institutional investors.。As more financial advisors get permission to offer Bitcoin ETFs to clients, analysts expect trading volume to increase next year。

The launch of a spot bitcoin exchange-traded fund in the United States has changed the minds of many investors, "said Alexis Marinof, head of the European branch of cryptocurrency WisdomTree." As an investable asset class, investors see more potential in the asset class as attention turns to the expected halving of bitcoin in April.。"

Greed is everywhere

The price of BTC has more than doubled in the past few months and recently surpassed $64,000.。Rapid price growth has sparked optimism, with the cryptocurrency fear and greed index reaching its highest level since BTC hit an all-time high of around $69,000 in November 2021 (86)。

The index ranges from 0 to 100, with 0 representing "extreme fear" and 100 representing "extreme greed."。The high index level indicates that investors have become too greedy, believing that cryptocurrency prices will continue to rise。This usually precedes a market correction as prices end up moving away from fundamentals。

Some analysts believe that such a high level of greed indicates that the crypto market is about to undergo a correction, as over-optimism usually heralds a price reversal.。Ultimately, while extreme greed suggests that cryptocurrency prices have a lot of room to fall, the persistence of current market optimism makes the exact timing of the correction difficult to predict.。