Crypto Funds Experience Significant Inflow, Led by Bitcoin
Last week, crypto funds received the largest single-week inflow since July 2022, with over $326 million entering the market, according to CoinShares data. The majority of this capital, totaling $296 million, went into Bitcoin-based funds. CoinShares attributed the increased inflow to growing investor optimism regarding the potential approval of a spot bitcoin exchange-traded fund (ETF) by the Securities and Exchange Commission (SEC). However, despite the higher inflows compared to recent months, CoinShares noted that this amount only ranked as the 21st largest on record. Nevertheless, analysts from CoinShares believe that a spot-based ETF is highly likely in the coming months, which would mark a significant regulatory milestone for the industry.
Declining Ether-based Funds
CoinShares analysts highlighted a substantial inflow of $24 million into Solana last week, while Ether-based funds continued to experience outflows. Although other altcoins saw positive net inflows, Ether recorded another $6 million of outflows. Over the past month, Ether-based funds have seen a net outflow of more than $10 million and a year-to-date outflow of $125 million. Meanwhile, Bitcoin’s value has retraced some of its gains from last week and is currently down 1.2% in the past 24 hours, trading at $34,357 according to CoinGecko.
Hot Take: Crypto Funds Show Resilience Despite Outflows from Ether
The recent surge in inflows into crypto funds demonstrates the ongoing interest and confidence among investors in the cryptocurrency market. While Ether-based funds continue to experience outflows, Bitcoin remains a dominant choice for investment. The anticipation of a potential spot bitcoin ETF approval by the SEC has fueled investor optimism and contributed to the inflow of capital. Despite the restrained nature of these inflows compared to historical records, the industry is poised for a regulatory breakthrough with the introduction of a spot-based ETF. As the crypto market continues to evolve, it will be interesting to observe how investor preferences shift and adapt in response to changing trends and regulatory developments.
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