Bitcoin Earnings Surge to $34K High as BTC on Spot ETF Hype

Bitcoin is back. The world's largest digital asset rose to a new high for the year, adding $35,000 during Asian trade. In addition, institutional appetite returned for the fourth consecutive week into crypto products.

Bitcoin (BTC) prices hit their highest level since May 2022, hitting $35,066 during Tuesday morning's Asian trading session.

Bitcoin back in favor of institutions

The asset has built on momentum over the weekend, rising a further 14.5% in the past 24 hours. At the time of writing, BTC is trading at $34,727 after gaining 22% since the same period last week.

Additionally, the property is now 50% off its November 2021 peak price of $69,000.

The big move was fueled by enthusiasm and expectations of exchange-traded funds.

Analysts noted that asset manager BlackRock has received limited approval. Additionally, it may begin the process of “seeding” its own position ETF product with cash as early as this month. Bloomberg EFF analyst Eric Balchunas explained.

“Seeding an ETF is when the initial funding is used by a bank or broker-dealer to purchase a few units of the creation (in this case, bitcoin) of ETF shares that can be traded on the open market on the first day.”

However, he added that seeding is not a lot of money, just enough to get the ETF going. “So I'm not going to read this because ‘omg BlackRock is buying a ton of Bitcoin,'” he said.

Read more: How to buy Bitcoin with PayPal: A step-by-step guide

However, institutional investors are piling into crypto products with income streams for the fourth consecutive week.

Bitcoin commodities dominated with $55 million in institutional revenue, CoinShares reported, as institutional revenue hit $66 million.

“The recent inflows are probably related to the excitement around the launch of the Bitcoin ETF in the US,” he said.

Investor caution

Total assets under management are up 15 percent since their lows in early September. It now totals nearly $33 billion, the highest point since mid-August.

However, CoinShares noted that the flow rate was “relatively low compared to the initial inflows following BlackRock's announcement in June.”

Read more: 12 Best Bitcoin Exchanges and Platforms in 2023

In addition, Ethereum (ETH) stocks remain weak with weekly losses of $7.4 million.

However, the total market capitalization in the spot market rose to $1.22 trillion. This is the highest level since early August as Bitcoin led the markets higher, adding to most of the gains.

Altcoin gains were around 5-6% and there were no double digit pumps in 30 except for crypto king BTC.