Key Points
- Bitcoin’s (BTC) market cap surpasses silver, becoming the eighth-largest asset globally.
- Institutional giants are offering access to Bitcoin ETFs, fueling further adoption and investment.
Bitcoin (BTC) has recently soared past $71,000, pushing its market cap to exceed that of silver and making it the eighth-largest asset worldwide. This significant growth marks a crucial point in the cryptocurrency’s journey, highlighting its increasing impact and acceptance within traditional financial markets.
Bitcoin’s Market Cap Ascends Financial Rankings
CompaniesMarketCap data reveals that Bitcoin’s market cap now stands at a staggering $1.4 trillion, outpacing silver’s $1.3 trillion. Although Bitcoin’s market cap still falls short of Alphabet Inc’s $1.6 trillion, industry experts predict a future where the cryptocurrency may even challenge gold, currently the largest asset worldwide valued at $14.66 trillion.
Galaxy Digital CEO Mike Novogratz expressed his belief in Bitcoin’s potential to surpass gold as the preferred wealth store. Despite the current market capitalization gap between Bitcoin and gold, Novogratz remains positive, pointing to the impending wealth transfer from baby boomers as a significant factor in Bitcoin’s rise.
It is estimated that baby boomers hold $85 trillion in wealth, a substantial portion of which is now accessible to registered investors via Bitcoin Exchange Traded Funds (ETFs), thus promoting further adoption and investment in the cryptocurrency.
Bitcoin ETFs Drive Price Surge
The recent surge in Bitcoin’s price, which saw a 2.6% increase in the past 24 hours, can be attributed to the success of spot Bitcoin ETFs. Since the Securities and Exchange Commission (SEC) approved these innovative products in January, institutional and retail investors have invested billions into the crypto market through ETFs. BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Bitcoin ETF (FBTC) have been leading this race, attracting billions in investment capital.
FBTC, in particular, experienced record-breaking net inflows, with a single-day influx of $405 million, bringing its total net inflow to $5.2 billion. Meanwhile, IBIT continues to dominate the ETF market, indicating a growing appetite for Bitcoin among institutional investors. Matt Hougan, CIO of Bitwise Asset Management, compares the approval of spot Bitcoin ETFs to an Initial Public Offering (IPO), suggesting that more capital is yet to be unlocked from major wirehouses.
Institutional giants such as Bank of America Corp (NYSE: BAC), Wells Fargo & Co (NYSE: WFC), and Morgan Stanley (NYSE: MS) are reportedly offering their affluent clients access to spot Bitcoin ETFs.
Moreover, international markets, including India, are preparing to embrace spot Bitcoin ETFs, providing retail and institutional investors with new investment opportunities. According to a previous report, Mudrex, an India-based crypto investment platform, is set to offer access to US spot Bitcoin ETFs, further expanding the cryptocurrency’s reach and accessibility.
Famed entrepreneur Robert Kiyosaki’s bullish forecast adds to the optimism surrounding Bitcoin’s future. With predictions of Bitcoin reaching $300,000 per coin by the end of 2024, investors are increasingly viewing Bitcoin as a lucrative investment opportunity with growth potential.
