Bitcoin trading volume doubles KOSPI’s

With Bitcoin's price rising recently, crypto assets are attracting unprecedented amounts of money. CoinShares said $2.7 billion entered the crypto market last week, with $2.6 billion specifically flowing into Bitcoin. In the first three months of this year, the influx of funds into crypto assets reached $10.3 billion, approaching the annual inflow of $10.6 billion recorded in 2021, the booming period of Bitcoin, when its price skyrocketed to a record $69,000.

The number of “Bitcoin millionaires” is also on the rise. According to Kaiko Research, approximately 1,500 Bitcoin wallets with a value exceeding $1 million are being created daily. March 1 marked a record for the number of “millionaire wallets,” reaching 1,691, the highest recorded in 2024 thus far.

The surge in Bitcoin prices is propelled by the influx of funds through spot Bitcoin ETFs. Asset management firms that have listed spot Bitcoin ETFs must purchase Bitcoin and actually possess them. BlackRock, the world’s largest asset management firm, is known to have purchased 200,000 Bitcoins in just two months. “Spot ETFs have facilitated the flow of funds from the traditional financial system into crypto assets,” said Jeong Seok-moon, the head of the Korbit research center.

The price of Bitcoin was further driven by the U.K.’s Financial Conduct Authority’s announcement that it will not object to the creation of a crypto asset-backed ETN market for institutional investors, thereby practically allowing the issuance of crypto-backed products. ETNs are a type of exchange-traded product issued by a bank or an investment manager that tracks an underlying index or assets. CNBC reported that Bitcoin bulls note this will lead to increased institutional investment into Bitcoin and other cryptocurrencies, which will, in turn, impact the price positively as more serious money will flood into the market.


신아형 abro@donga.com