Crypto Inflows Reach $151 Million in First Week of 2024
In the first week of 2024, there were inflows of $151 million into the crypto market, with Bitcoin leading the way with $113 million in the past nine weeks. This accounted for around 3.2% of the assets under management by investment companies, and it is expected to increase further with the introduction of spot Bitcoin exchange-traded funds (ETFs). ProShares ETFs received the highest inflows among major crypto investment companies, with $72 million, followed by Coinshares Digital Securities with $18.6 million.
Will ETH Inflows Benefit From Crypto ETF Filings?
Ethereum saw an influx of $29 million in the first week of 2024. This is likely to be boosted later in the year by the launch of Ethereum spot ETFs by investment companies such as ARK Invest and VanEck. These filings could potentially attract more investors and increase inflows into Ethereum.
Crypto-related Equities and Short-sellers
Crypto-related equities also experienced a positive start to the year, with $24 million in new investments. On the other hand, Bitcoin short-sellers withdrew $1 million from the market during this period. Additionally, Solana investors pulled out $5.3 million from crypto funds.
Bitcoin ETF Applicants Jostle for Crypto Inflows
Anticipated Bitcoin ETFs could see significant inflows, with estimates ranging from $34 billion to as high as $130 billion. Spot Bitcoin ETF applicants are also optimistic about potential inflows, with expectations of $1 billion within the first few days after approval and up to $2.4 billion within a quarter. Galaxy Digital predicts that its partnership with Invesco to operate its ETF product will spur $14 billion worth of inflows in the first year of its launch.
Hot Take: Crypto Inflows Set to Surge with ETF Approvals
The surge in crypto inflows before the approval of ETFs is a positive sign for the market. As more investors gain access to crypto through regulated investment vehicles, such as spot Bitcoin and Ethereum ETFs, it is expected that inflows will continue to increase. This could lead to significant growth in the crypto market and attract even more institutional and retail investors.
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