Institutions Invest Billions in Bitcoin and Crypto Following ETF Approval: CoinShares
Digital assets manager CoinShares reports that institutional investors are pouring billions of dollars into Bitcoin (BTC) and cryptocurrencies following the approval of a spot BTC exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC).
According to CoinShares’ latest Digital Asset Fund Flows report, BTC investment products attracted $1.18 billion in inflows last week after the ETF approval. While this didn’t break the previous record set by futures-based Bitcoin ETFs in October 2021 ($1.5 billion), it still indicates significant institutional interest.
Although not a record-breaking figure, CoinShares highlights that exchange-traded product (ETP) volumes reached a new high last week, with $17.5 billion traded. This represents a substantial increase compared to the average weekly trading volume of $2 billion in 2022.
The majority of the inflows went to BTC, with a total of $1.16 billion invested. Ethereum (ETH) also saw significant inflows of $25.7 million, while other altcoins like XRP, Cardano (ADA), Litecoin (LTC), Solana (SOL), and Polkadot (DOT) attracted smaller amounts.
Hot Take: Institutional Interest in Bitcoin and Crypto Continues to Grow
The approval of the spot BTC exchange-traded fund has sparked a surge in institutional investment in the crypto market. CoinShares’ report shows that institutions are allocating billions of dollars to Bitcoin and other cryptocurrencies, signaling their growing confidence in the asset class. The record-breaking trading volumes of ETPs further demonstrate the increasing interest from institutional players. As the crypto market continues to mature and regulatory barriers are removed, we can expect more institutional capital to flow into digital assets, driving further growth and adoption.
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