The world's leading cryptocurrency, Bitcoin, has reached a new apex soaring above the $43,000 watermark – more than doubling in value this year (+160%) - to reach its highest level since April 2022. This ascent comes amid increased speculation surrounding the potential approval of a U.S. spot Bitcoin ETF (TSX:EBIT), galvanizing sentiment across financial markets. Expectations that US interest rates may continue to drop next year - a move that could pull greater volumes of institutional investment, predicted to migrate towards cryptocurrencies – is further boosting optimism. That said, the stellar year-to-date performance of crypto assets may well lead some investors to take their profit in the very short term.
The FT Wilshire Top 5 Digital Assets Index climbed by 18.20% over the week reflecting the broader trend among crypto assets. Ethereum, as an example, was also enjoying the bull market, as evidenced by the FT Wilshire Ethereum Blended Price Index, up 8.84% over the week.
Evidently, Cryptocurrency ETFs as a group enjoyed exceptional performance of 14.30% over the week, while demonstrating eye-catching year-to-date growth of 127.84%.
On a fund level, ETC Group Physical Bitcoin (BTCE) is worthy of mention, surging to become one of the week's forerunners with an increase of 15.40% - resulting in staggeringly high cumulative annual returns of 158.93%. Despite adverse market conditions, the fund has attracted inflows amounting to $374 million, reflecting a nearly twofold increase (exactly at +87%) in AUM.
Also reaping the rewards of crypto performance were certain Blockchain funds that seemed well positioned to leverage the upward trends displayed on cryptocurrency exchanges in past weeks. The iShares Blockchain Technology UCITS ETF (BLKC) saw growth rocket by a solid 16.15% last week.