Bitcoin to Receive Adequate Support from Institutional Inflows: Coinbase Research
Coinbase research analysts project adequate support for Bitcoin (BTC) in the market for the next three to six months due to institutional inflows.
The institutional research arm of the digital asset exchange explained the trajectory of Bitcoin, Ethereum, and other on-chain data post-ETF approvals in a recent report.
Following the approval of spot Bitcoin ETFs by the United States Securities and Exchange Commission on Jan 10, events in the market have been dominated by ETF narratives.
The Bitcoin market has recorded significant inflows following the launch of ETFs, propelling the assetโs price above $52,000. Bitcoin has not traded above that range since Decemberย 2021, tapping yearly highs as market activity rebounds.
Spot ETFs Lead to Bitcoin Inflows
According to the report, the newly approved ETFs have raked in net inflows of $3.3 billion since launch. This has led to a surge in Assets Under Management (AUM) to $36.8 billion and the wider crypto AUM tapping $58 billion.
These figures are higher than the median expectations from institutional players before the approvals, which stood at $1 billion.
The soaring inflows and other indices led analysts to conclude that the market should remain well-supported for the next three to six months.
Last week, CoinShares reported weekly inflows into Bitcoin institutional funds at over $1 billion, 98% of the marketโs inflow.
At press time, Bitcoin is priced at $51,850, up 9.6% in the last seven days, with its market cap breaching $1 trillion.
Institutional Investment Could Trigger ETH Price Spikes
Coinbase analysts expect more institutions to turn their attention to Ethereum in the coming months due to the success of Bitcoin ETFs.
Per the report, open interest in CME Bitcoin and Ether futures recovered in the last six days. Based on this, open interest in Ether may record upticks relative to BTC.
A potential spot Ethereum ETF would also be a game-changer for the assets whose growth has been eclipsed by Bitcoin. With the success of BTC ETFs, Ethereum is next for most institutions looking to onboard traditional investments to the market.
The post Bitcoin Should Remain Well-Supported On Institutional Inflows For Several Months: Coinbase Research appeared first on Cryptonews.
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