Fresh Money Entering Crypto Market as Bitcoin Trades Near $35,000
As Bitcoin (BTC) hovers around the $35,000 mark, there is a notable influx of new funds entering the cryptocurrency market. In the past week alone, there was a total inflow of $261 million in crypto investment products.
Crypto investment vehicles like exchange-traded products (ETPs) and Trusts serve as important tools for institutional and large-scale investors to gain exposure to cryptocurrencies. These investors often prefer digital investment products over direct crypto custody due to regulatory challenges and accounting-related reasons.
Crypto Investment Products Witness Sixth Consecutive Week of Inflows
A recent report from CoinShares reveals that there has been a continuous inflow of funds into crypto investment products for six consecutive weeks. Last week’s inflow amounted to $261 million, bringing the total inflows during this period to $767 million. Interestingly, this surpasses the total inflows recorded for the entire year 2022, which stood at $736 million.
Bitcoin Receives Majority Share of Inflows, Ethereum and Solana Also See Significant Investments
Out of the total inflows observed last week, Bitcoin attracted over 85% of the share with approximately $229 million flowing into the cryptocurrency. Ethereum saw an inflow of $17.5 million, marking its highest since August 2022. Solana, which has experienced a significant price surge in recent months, received an inflow of $10.8 million.
On the other hand, Short Bitcoin witnessed inflows of $4.5 million, indicating that some investors hold a bearish sentiment towards current price levels.
Influx of Big Money into Crypto Ecosystem
There are additional indications suggesting that significant amounts of capital are entering the crypto ecosystem. For example, there has been an increase in daily Bitcoin transactions exceeding $100,000, as reported on October 24.
Hot Take: Institutional Investors Show Growing Confidence in Cryptocurrencies
Institutional and large-scale investors continue to demonstrate their growing confidence in cryptocurrencies through increased investments in crypto investment products. This trend is evident in the consecutive weeks of inflows and the surpassing of total inflows for the entire year. As more institutions embrace digital investment options, it is likely that the crypto market will experience further growth and stability.
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