Bitcoin’s share of crypto market highest since 2021 partly due to ETFs
Bitcoin’s dominance of the crypto sector is at a three-year high, reflecting robust demand for US exchange-traded funds holding the largest digital asset as well as a rocky period for smaller tokens.
Bitcoin at the end of last week accounted for almost 55% of the $2.4 trillion market for virtual currencies, a level last seen in April 2021, according to CoinMarketCap data. The next largest by that metric are Ether, stablecoin Tether, the Binance exchange’s native token BNB, and Solana.
The batch of three-month-old US spot ETFs from issuers including BlackRock Inc. and Fidelity Investments have amassed about $56 billion in assets to date, ranking as one of the most successful debuts ever for a fund category.
The inflows helped propel Bitcoin to a mid-March record of $73,798. While the token has retreated roughly 6% since then, a gauge of smaller digital assets has sunk more than 30%. The drop coincided with reduced expectations for the kind of looser US monetary policy settings that can fuel speculative gains.
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