Bitcoin briefly surpassed $71,000 on Tuesday, boosted by sentiment around possible new bitcoin-based institutional product offerings.
The London Stock Exchange approved a marketplace for trading BTC and ETH exchange-traded notes (ETNs) in May, which led to strong upside momentum for BTC, traders said.
Projects linked to Coinbase Ventures recorded the most gains, with an average 10% increase, while the CoinDesk 20, an index of the biggest tokens, rose 4.47%.
Bitcoin (BTC) briefly topped the $71,000 mark early Tuesday before retreating as market sentiment grew on new bitcoin-based institutional product offerings and demand from traditional desks.
Crypto markets started rising on Monday as the London Stock Exchange approved a marketplace for trading bitcoin and ether (ETH) exchange-traded notes (ETNs) in May, as reported. The LSE will start to accept applications from April 8.
Singapore-based QCP Capital said in a Telegram broadcast there was “strong upside momentum” for bitcoin after the development, with asset managers also continuing to add BTC allocations as a “portfolio diversifier.”
“Anecdotally, wealth desks at major banks have been pleasantly shocked at the tremendous demand from clients for bitcoin spot ETFs and requests for structured products,” the firm added.
Bitcoin jumped nearly 5% in the past 24 hours, leading the rally among crypto majors, data show. Ether, Solana’s SOL, and Cardano’s ADA rose over 4.5%. Near Protocol’s NEAR and Internet Computer’s ICP jumped over 10% to post the most gains among alternative tokens.
Projects linked to Coinbase Ventures, the investment arm of the prominent crypto exchange, recorded the most gains as a category with an average 10% bump. Such gains came as sentiment and on-chain activity on the closely related Base blockchain grew over the weekend.
The broader CoinDesk 20, an index of the biggest tokens minus stablecoins, rose 4.47%. Data shows that open interest in crypto-tracked futures jumped nearly 8%, indicative of money flowing into the market—which usually precedes volatility.
The rise helped erase losses from last week amid record outflows from the Grayscale bitcoin ETF (GBTC). Inflows to other bitcoin ETFs dropped in tandem, giving rise to concerns of a spot-driven selloff.
Some market analysts said the waning inflows were not a sign of concern, however, as long-term investors could have partially profited from their positions.
“We also do not see the state of inflows into spot Bitcoin ETFs as any cause for concern,” Bitfinex analysts said in an email “Even though negative ETF outflows featured heavily last week, all of it is from the Grayscale Bitcoin Trust (GBTC), as investors both switch out of the higher fees demanded by GBTC and also take profit, especially as many of these investors are long-term holders who entered during the bear market.”
“GBTC investors are not the only sellers in the market. Whale wallet activities have also indicated significant profit taking,” they added.
