Cash Flow Into Bitcoin Investment Products Suggests Institutions Are Betting on a BTC Rally: Meltem Demirors
Meltem Demirors, the chief strategy officer (CSO) at digital asset manager CoinShares, has noted that institutional investors are showing confidence in an upcoming Bitcoin (BTC) rally. According to Demirors, there has been a significant increase in flows into Bitcoin investment products over the past six weeks, reaching $760 million in 2023, exceeding the levels in 2022. She believes this is an indicator of institutional buyers positioning themselves for a potential rally in Bitcoin by the end of the year and into Q1 of next year.
Demirors also anticipates that the US Securities and Exchange Commission (SEC) will approve a Bitcoin spot market exchange-traded fund (ETF) by the end of the year. While she expects enthusiasm for this approval, she suggests that it may take some time for capital to flow into a Bitcoin ETF if approved.
Bitcoin is currently trading at $37,369 at the time of writing.
Hot Take: Growing Institutional Confidence in Bitcoin
The recent surge in flows into Bitcoin investment products indicates growing confidence among institutional investors regarding an upcoming rally in Bitcoin. With significant increases in flows and trading volumes, it seems that institutions are positioning themselves for potential gains by the end of the year and into the first quarter of next year. Additionally, anticipation for the approval of a Bitcoin ETF by the SEC further underscores this growing confidence in Bitcoin as an investment asset.
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