Bitcoin hit a new all-time high above $69,000 on Tuesday, just two months after the approval and launch of the ten spot bitcoin exchange-traded funds (ETFs). Experts agree that while Bitcoin's rally would have eventually reached new highs, the ETFs have played a crucial role in accelerating the cryptocurrency's climb.

Seth Ginns, managing partner and head of liquid investments at CoinFund, stated that the new all-time high would have occurred regardless, but the ETF flows have likely expedited the overall cycle. Despite Grayscale's GBTC losing more than 200,000 Bitcoin holdings since the ETF launches, the spot funds have accumulated nearly 163,000 tokens on a net basis, as per data from BitMEX.

BlackRock's IBIT and Fidelity's FBTC alone hold more than 196,000 bitcoins, showcasing the growing interest from institutional investors in cryptocurrency. Jim Iuorio, managing director of TJM Institutional Services and a veteran futures and options trader, emphasized that the introduction of ETFs had significant influence and without them, Bitcoin would not have reached its all-time highs.

However, Iuorio believes that the rally is not solely ETF-driven. He points to the current political landscape, including expectations of the U.S. Federal Reserve lowering benchmark interest rates in the coming months and the end of the Bank Term Funding Program, as factors contributing to Bitcoin's surge. The "no confidence" vote in fiat currencies and concerns over potential quantitative easing and accommodative policies by the Fed have also fueled interest in cryptocurrencies.

The rise in Bitcoin's price in 2023 was further fueled by BlackRock's announcement of their intention to open a spot fund and Grayscale's legal victory in challenging the SEC's rejection of its spot ETF hopes. Nate Geraci, president of the ETF Store, acknowledged that while multiple factors are driving Bitcoin's price, ETFs are undoubtedly playing a significant role. The convenience of the ETF wrapper has attracted retail investors, advisors, and institutional investors who prefer not to directly purchase Bitcoin from crypto exchanges.

The adoption of spot Bitcoin ETFs has provided a seamless way for a broader range of investors to participate in the cryptocurrency market. The recent surge in Bitcoin's price has caught the attention of industry experts and market observers, underscoring the growing mainstream acceptance of digital assets.

CoinDesk, an award-winning media outlet covering the cryptocurrency industry, provided this analysis. The publication, acquired by the Bullish group in November 2023, functions as an independent subsidiary with an editorial committee ensuring journalistic independence.

The rise of the spot Bitcoin ETFs and crypto exchanges is continually monitored by Helene, a New York-based reporter covering Wall Street. Helene is also the co-host of CoinDesk's Markets Daily show and holds BTC and ETH. She graduated from New York University's business and economic reporting program, and her insights have appeared on CBS News, YahooFinance, and Nasdaq TradeTalks.

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