Bitcoin ETF Drives Inflows of $346 Million
Several top asset management firms, including 21Shares, CoinShares, Bitwise, Grayscale, and ProShares, have experienced significant inflows of crypto funds in recent weeks. The total amount of inflows reached approximately $346 million, marking the largest surge since the 2021 bull run. This brings the Year-to-Date institutional inflows to over $1.5 billion. James Butterfill, CoinShares Head of Research, attributes this influx to the anticipation of spot Bitcoin ETF approval from the SEC. The combination of price rises and inflows has pushed the total assets under management (AuM) to $45.3 billion, the highest in over a year and a half.
Bitcoin Investment Products Lead Inflows
Bitcoin investment products accounted for a significant portion of the total inflows, reaching as high as $312 million. On the other hand, short-sellers continue to see outflows for the third consecutive week, with a total of $900,000. The AUM has decreased by 61% since the peak in April 2023. The majority of inflows came from Canada and Germany, with only a small portion from the United States. The low participation from U.S. investors is likely due to their wait for the Bitcoin ETF product.
Altcoins Experience Inflows
Ethereum and other altcoins also saw inflows but in smaller amounts. Ethereum had a four-week run with $103 million and an additional $34 million inflow in the past week. Altcoins like Solana, Polkadot, and Chainlink recorded inflows totaling $3.5 million, $0.8 million, and $0.6 million respectively.
SEC Decision on Bitcoin ETFs Still Awaited
The wait for a positive decision from the SEC on the U.S.-based Bitcoin ETFs continues. The regulator has had discussions with applicants such as BlackRock and Grayscale Investments. Bloomberg analysts remain optimistic, with a 90% chance of approval predicted in January 2024.
Hot Take: Bitcoin ETF Sparks Inflows and Positive Market Sentiment
The surge in inflows to top asset management firms, driven by the anticipation of a spot Bitcoin ETF approval, has resulted in significant market excitement. With over $346 million flowing into the crypto market, institutions are increasingly bullish on Bitcoin and other cryptocurrencies. This influx of funds has pushed the total assets under management to a new high, signaling growing confidence in the crypto space. As investors eagerly await the SEC’s decision on Bitcoin ETFs, the market remains optimistic about the future of digital assets.
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