Bitcoin ETF IBIT Sees 25% Surge Amid $3.2 Billion Crypto Fund Inflows

The Commodity Futures Trading Commission (C.F.T.C.) is planning to establish crypto rules without congressional approval, following the failure of the Clarity Act. Bitcoin is trading around $86,100, showing slight gains. The C.F.T.C. has proposed two new regulations, CTX and CAM, to oversee crypto asset transactions and markets, aiming to prevent fraud. The market's reaction to these developments remains uncertain.

The CFTC proposed federal regulations for crypto exchanges, covering trades involving leverage and requiring customer protections. The rules aim to standardize oversight, with compliance costs potentially impacting some products. BTC and ETH prices remained stable, while altcoins saw mixed movements. The US Treasury rejected two crypto surveillance proposals, and the SEC approved leveraged funds. Ethereum tested cross-chain transactions, and OKX plans to tokenize major stocks.

Binance's Bitcoin reserves dropped by 40,000 BTC since Sept. 20, with net outflows of 23,137 BTC in the week ending Sept. 27, the highest since June 2023. CryptoQuant notes this as a potential accumulation signal. Meanwhile, stablecoin inflows to Binance from whales increased by 40% since mid-August, suggesting growing interest in crypto investments.

Bitcoin fell 0.26% to $85,540.7 on Tuesday, extending losses as global bond yields surged, offsetting regulatory optimism. Broader crypto prices also declined, but markets hope for an 'uptober' trend. The CFTC proposed a regulatory framework for leveraged crypto trades, adding support to the sector.

U.S. 10-year Treasury yields reached 5.34%, the highest since 2002, as global bond markets faced elevated rates. The SEC proposed a custody framework for digital assets, allowing self-custody under certain conditions. Bitcoin rose 43% this quarter, while Strategy's holdings reached a record 847,666 bitcoins. Block launched its first consumer bitcoin ad campaign, targeting 60 million 'bitcoin-curious' Americans. Various regulatory and adoption updates were reported in the bitcoin space.

Citi raised its 12-month price targets for bitcoin to $113,000 and ether to $3,028, citing stronger crypto activity and ETF inflows. Bitcoin and ether have gained 40% and 68% respectively over three months. Citi expects about $5 billion in crypto ETF inflows over the next year, with bitcoin showing more upside potential than ether.