Bitcoin exchange-traded funds have taken in over $1 billion in fresh cash over the past three days, helping propel the leading cryptocurrency to nearly $73,000.
Just on Wednesday, investors bought over $500 million worth of shares in the funds managed by BlackRock, Fidelity, and Grayscale, according to data from Farside Investors.
Bitcoin’s price has surged this week, and on Thursday reached $72,659 before dropping slightly. It was recently priced at $72,606, a 10% 24-hour rise. Bitcoin is currently a little over 40% below its October record of $126,080.
President Trump on Wednesday held a meeting at the White House with crypto executives like Coinbase CEO Brian Armstrong, as well as regulators like Securities and Exchange Commission Chair Paul Atkins.
At a press conference after, the president said that the Clarity Act was a “very, very powerful” piece of legislation and urged lawmakers to pass it.
The crypto market structure bill was passed by the House of Representatives last year but has largely remained in deadlock this year. Some lawmakers were hoping for a vote in August but that will now go ahead in September.
Crypto businesses have long called for clear rules in the industry; the Clarity Act aims to establish a framework for distinguishing between digital assets that are securities, commodities or payment stablecoins.
The lion’s share of this week’s investment has been taken in by BlackRock’s iShares Bitcoin Trust, which has received $588.5 million since Monday.
Other funds, like Morgan Stanley’s Bitcoin Trust, also experienced significant trading action. The flurry of buying comes after investors last week cashed out over $385 million from the U.S. funds after tensions in the Middle East started to escalate again. The price then mostly remained flat, despite the ETF redemptions.
Investors may be feeling bullish after the Treasury Department announcing on Wednesday that it would more than double the size of its government debt repurchases.
Lower long-term yields reduces the opportunity cost of holding non-yielding assets like bitcoin and gold, and generally supports risk-on sentiment. Both soared as the dollar weakened following the announcement.