Bitcoin price shocks $87,000, and ETF holders return to profitability

Bitcoin ETF holders are back in the profit zone with a price close to $87,000

As the price of Bitcoin strengthened again, investors holding that asset through ETF returned to profitability.

Monday's rebound turned ETF holders into losers

Bloomberg ETF analyst James Seyffart wrote on the X Platform Sunday that this round of gains in New York's market Monday morning put the average cost for a holder of an Bitcoin ETF 0 back on its balance sheet for the first time. According to his estimate, the average price benchmark for an United States is about $81.72, returning above that level for the very first time since January of this year.

Prices continue to rise after key gains

Notably, this round of gains came on the heels of several profit-sharing events: last week, the much-debated crypto industry legislation Clarity Act was shelved in the legislative process while the Federal Reserve announced an interest rate hike. However, Bitcoin still broke through $86,000 and touched $86,837 for one day before continuing to fluctuate around $86.772.

Even so, the current price is still more than 30% below last year's all-time high of $126,080.

Reinvestment in the ETF product

Net inflows of more than $6 million were recorded last week by United States , which is managed by institutions such as BlackRock , Fidelity, Grayscale and Morgan Stanley. Investors bought shares in the fund on Thursday and Friday for a combined total of nearly $593 million, according to data from Farside Investors.

In August, the Treasury Department announced that it would at least double its purchases of long-term government bonds. The Bitcoin rebounded and posted its best one-week performance since 2023. It then reached an all-time high in October, but was shut down by the end of the year after the biggest event in crypto history occurred: more than $19 billion worth of leveraged positions were sold to liquidation .

Recently, however, markets seem to have digested the Fed's signal of a shift toward bullishness and money has been reintroduced into so-called bear market hedge funds.

ETF is seen as an industry milestone

United States Securities and Exchange Commission (( SEC )) in 2024 approved the listing of Bitcoin Bitcoin ETF on United States , making this fund the most successful issuance of such an investment instrument in history. Investors who were previously discouraged by the complexity of managing cold wallet and private key with respect to Bitcoin , can now directly purchase shares of funds listed on a stock exchange, tracking their price at Bitcoin .

According to Coinglass, Bitcoin ETF currently has a total of $98.8 billion in assets under management managed by Wall Street's major financial institutions.