Digital revival

It’s not been quite the inflow of cash into bitcoin that was predicted but the price is recovering, post the launch of spot bitcoin ETFs in the US. Swiss-based Fineqia International’s analyst Matteo Greco writes that bitcoin (BTC) ended the week at approximately USD52,150, showing a notable 7.9 per cent increase from the previous week’s closing value of around USD48,300.

Last week marked bitcoin’s return to trading above USD50,000 for the first time in over two years, signalling strong momentum following the approval of BTC ETFs Spot, Greco says. The last time BTC traded above USD50,000 was back in December 2021, immediately following its all-time high of USD69,000 in November of the same year.

London’s Nickel Digital Asset Management is seeing the same growth and improvement in spirits in the sector having conducted a survey of institutional investors. Up to 83 per cent of institutional investors and wealth managers believe the recent strong performance of the two leading cryptocurrencies – bitcoin and Ethereum - will fuel demand for other digital assets, the firm says.

The survey, completed in January 2024, asked institutional investors and wealth managers to predict prices for bitcoin and Ethereum by the end of 2024. Around 76 per cent predicted bitcoin would reach USD45,000 by the end of the year – it is currently already over USD51,000. That included just 21 per cent who predicted it would hit USD50,000 or more. Around 40 per cent predicted Ethereum would reach USD2,500 by the end of the year – it is currently over USD2,700.

Thus, the upper end of the 2024 full-year forecasts have already come true, the firm says.

More surveys, and this one is from our data partners, Trackinsight, which has published ‘50+ Charts on Worldwide ETF Trends’, in partnership with J.P. Morgan Asset Management and State Street, its fifth annual survey which reports that ETF assets soared to USD11 trillion, showcasing continuous expansion, in 2023. Europe’s assets increased by almost USD400 billion, edging closer to the USD2 trillion milestone, the firm says.

Beverly Chandler, Managing Editor

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