Crypto Scoop: Bitcoin Skyrockets to $52,000 As Bitcoin ETF Inflows Surge

The cryptocurrency total market cap soared to $2Trillion as top cryptocurrencies recorded notable price gains. In this edition of the Crypto Scoop, we review the following:

• Price moves of top cryptocurrencies
• Bitcoin ETF investment inflows
• Crypto initiatives in Nigeria and Torrevieja

Bitcoin Surges To $52,000 As Several Altcoins Trail Along In Green

In a remarkable turn of events, Bitcoin has surged past the $50,000 mark for the first time since December 2021, reaching a new high of $52,000, a level not witnessed in over two years. The cryptocurrency's resurgence triggered a wave of positive developments across the crypto landscape. 

MicroStrategy, a firm that has been strategically investing in Bitcoin, saw its stock (MSTR) rise by 11% over the last 24 hours, reaching $719 and gaining an impressive 33% as Bitcoin gains renewed shareholders' trust in the company. The company's bold investment strategy in Bitcoin, now totalling 190,000 BTC, is worth over $10 billion.  MicroStrategy's executive chairman, Michael Saylor, declared Bitcoin the "world's most popular investment asset." He attributed this status to the surge in demand driven by spot Bitcoin exchange-traded funds (ETFs), emphasising a tenfold increase in demand compared to supply from miners.

Bitcoin's positive momentum rippled through the market, pushing the total crypto market cap to $2 trillion, a milestone not achieved in over two years. Ethereum surged to $2,800, and altcoins, including XRP and ADA, also saw gains, with XRP reaching $0.55 and ADA approaching $0.6. Solana also soared to $117 and surpassed BNB, securing the fourth position in the market cap.

Bitcoin Investment Inflows Skyrocket as Bitcoin ETFs Take Center Stage

Spot Bitcoin exchange-traded funds (ETFs) have attracted more net inflows in the last few days than in the first four weeks of trading.  On February 12, spot Bitcoin exchange-traded funds (ETFs) witnessed an unprecedented surge, overshadowing traditional mining efforts by a staggering tenfold. Preliminary figures reveal that a staggering $493.4 million, equivalent to approximately 10,280 Bitcoins, flooded these ETFs. 

Leading the charge, BlackRock's iShares Bitcoin Trust emerged as the front-runner, securing the lion's share of the massive influx with an astounding $374.7 million. Fidelity's Wise Origin Bitcoin Fund contributed significantly, amassing $151.9 million, while Ark 21Shares Bitcoin ETF attracted $40 million. Despite Grayscale experiencing outflows of $95 million and Invesco Galaxy ETF seeing $20.8 million left, the net inflows soared, reaching nearly half a billion dollars. This influx outpaced the output of Bitcoin miners, who produced approximately 1,059 BTC worth $51 million on the same day.

According to CryptoQuant's report on February 14, a staggering 75% of new Bitcoin investments trace back to the ten Spot Bitcoin ETFs approved in the United States on January 11. Excluding Grayscale’s Bitcoin Trust (GBTC) ETF, these ETFs have fueled over three-quarters of fresh Bitcoin investments in the past two weeks.

While the excitement about Bitcoin ETF continues, Franklin Templeton,  announced its application for a spot Ether exchange fund in the United States.  The $1.5 trillion asset management firm submitted the S-1 filing with the United States Securities Exchange Commission on Feb. 12. If approved, it would be listed as “Franklin Ethereum ETF” on the Chicago Board Options Exchange.

Crypto Initiatives and Regulation Across The Globe

In a bid to tackle financial crimes, particularly money laundering, Nigeria is being urged to establish comprehensive regulations for cryptocurrency activities. Adedeji Owonibi, co-founder of Nigerian blockchain intelligence service provider A&D Forensics, emphasised the need for regulatory measures, stating that the absence of laws allows various practices to go unchecked. 

Despite the recent lifting of the crypto transaction ban by the Central Bank of Nigeria (CBN), which enables banks to work with virtual assets service providers (VASPs), Owonibi stressed the importance of cryptocurrency compliance. He highlighted a need for specific laws to ensure that banks adhere to regulations when dealing with VASPs, emphasising that without laws, there is no basis for enforcing offences.

Meanwhile, the city of Torrevieja in Spain, with a population of almost 90,000, is gearing up to become one of the country's first crypto-friendly locations. Partnering with the local merchant association, Apymeco, Torrevieja plans to incentivise the use of cryptocurrency as a payment option. The multi-phase plan aims to increase the digitisation of commerce transactions using blockchain technology in the first phase. This initiative seeks to enable stores to accept crypto payments for goods and services.