Bitcoin Rises Amid Declining US Banking Shares, Spot Bitcoin ETF Laris Manis

Bitcoin has experienced an increase amid the decline in US banking shares. (Photo; Doc. Pexels)

JAKARTA - Regional bank stocks in the United States (US) continue to decline, triggered by the poor performance of the New York Community Bancorp (NYCB), one of the country's largest banks. NYCB reported heavy pressure on its real estate portfolio, which caused its shares to plummet 40% in the past two days.

In the midst of the US banking crisis, the price of Bitcoin continues to rise, reaching a level of 43,000 US dollars on February 1. The Bitcoin community continues to show strength despite concerns about the health of the entire US banking industry.

One of the factors that support the increase in Bitcoin prices is the high interest in the Exchange-Trad Funds (ETF) Bitcoin spot, which is an investment product that follows the price of Bitcoin in the real market. Bitcoin spot ETF was first launched on January 11, 2024, after the US Securities and Exchange Commission (SEC) approved 11 Bitcoin spot ETF products from various issuers.

Since its launch, the spot's Bitcoin ETF has drawn strong inflows from investors, both retail and institutional. According to data from Bloomberg, the spot's Bitcoin ETF has raised assets of US$7.6 billion in less than a month. Trading volume for the Bitcoin spot ETF has also continued to increase in recent times.

Bitcoin spot ETF offers convenience and security for investors who want to invest in Bitcoin without having to buy and store Bitcoin directly. Bitcoin spot ETF also provides higher transparency and liquidity than other Bitcoin investment products, such as trust or closed funds.