Investing.com - Despite the recent withdrawal of funds from US exchange-traded funds (ETFs), bitcoin enthusiasts have remained undeterred. The leading cryptocurrency managed to climb back above the $US70,000 mark.
On Monday, most digital assets saw an increase, with bitcoin gaining up to 5.8%, reaching $US70,014. This marks the first time in more than a week that bitcoin has crossed the $US70,000 threshold. Other cryptocurrencies like Ether, Solana, and Dogecoin also experienced gains, rising around 5% and over 4% respectively.
Last week, ETFs experienced a withdrawal of almost $US900 million, indicating continuous outflows from the Grayscale Bitcoin Trust (NYSE:GBTC) and a slowdown in subscriptions for offerings from BlackRock (NYSE:BLK) and Fidelity Investment.
Bitcoin ETFs have played a crucial role in driving the historic rally of the largest cryptocurrency this year. Strong inflows into these funds ignited optimism about the exponential growth of this asset class, attracting a broader range of investors.
However, significant outflows last week led to traders hedging more against lower prices and substantial liquidations of leveraged bullish bets in the crypto futures market.
The highly anticipated US spot bitcoin ETFs, which commenced trading earlier this year following approval from the US Securities & Exchange Commission, accounted for the majority of total crypto fund flows. Some investors who owned older Canadian and European funds shifted their money to cheaper US funds.
Last week, the ten US bitcoin funds saw $US888 million in outflows, representing about 94% of total global crypto fund flows. Funds holding Ethereum, Solana, and Cardano also experienced net outflows of around $US43 million last week. Despite this, altcoins like Polkadot, Avalanche, and Litecoin saw inflows of $US16 million during the same period.