Bitcoin Surges Past $100,000 Milestone on Record ETF Inflows

Bitcoin's price surge past the $100,000 milestone has been driven by unprecedented inflows into US spot Bitcoin exchange-traded funds (ETFs). According to data from ETF trackers, BlackRock's iShares Bitcoin Trust alone absorbed $1.2 billion in new investments last week, pushing total assets under management past $50 billion.

The surge is also attributed to regulatory tailwinds, including the SEC's approval of options trading on spot Bitcoin ETFs and the CFTC's ongoing classification of Bitcoin as a commodity. These developments have reduced tail risks around custody, hacks, and enforcement actions that plagued earlier crypto winters.

Broader macroeconomic factors are also aligning in Bitcoin's favor, including persistent dollar weakness and stable U.S. Treasury yields. The asset's fixed supply of 21 million coins benefits disproportionately from loose monetary policy expectations, which continue to play out post-halving dynamics from April 2024.