Serious investors continue to pour money into Bitcoin funds
Last week, serious investors continued to flood the market and Bitcoin funds with cash, resulting in the biggest 10-week inflows since the height of the 2021 bull run. According to a report by digital asset fund manager CoinShares, crypto investment products received $176 million last week, bringing the 10-week total to $1.76 billion. The report also revealed that total assets under management have increased by 107% this year and currently stand at $46.2 billion, which is still 47% below the all-time high reached in 2021.
Bitcoin futures ETF launch drives inflows
The last time inflows were this high was in October 2021 when the first-ever Bitcoin futures exchange-traded fund (ETF) was launched in the US and traded nearly $1 billion in one day. Although Bitcoin’s price has dropped by 34% since then, it is still significantly higher than its value at the beginning of this year. This has led some analysts to believe that a bull run may be on its way, especially due to the hype surrounding the potential approval of a spot Bitcoin ETF.
Spot Bitcoin ETF approval expected in January
Bloomberg Intelligence analysts predict that the approval of a spot Bitcoin ETF, which would provide traditional investors with exposure to cryptocurrencies, is likely to happen in January. In anticipation of this approval, investors are pouring money into the crypto space. Analysts expect updated S-1 filings to be submitted to the SEC as applicants rush to comply with feedback from regulators.
Bitcoin dominates investment inflows
CoinShares reported that Bitcoin was the main beneficiary of investment inflows into products such as Grayscale, 21Shares, and ProShares, receiving $133 million. Additionally, investments in Ethereum-based products received $31 million, while blockchain equities saw their seventh consecutive week of inflows. It’s important to note that these investments are typically made by experienced investors who opt for vehicles that track the crypto markets, rather than buying and selling digital assets on exchanges.
Hot Take: Bitcoin funds receive significant inflows from serious investors
Last week saw a surge in investment into Bitcoin funds, with serious investors pouring in cash. This influx of capital marks the largest 10-week inflows since the peak of the 2021 bull run. The potential approval of a spot Bitcoin ETF is driving excitement and attracting traditional investors to the crypto market. Analysts predict that this approval may come as early as January, resulting in increased market activity and updated filings with regulatory bodies. Bitcoin remains the dominant choice for investment inflows, followed by Ethereum-based products and blockchain equities. These investments primarily represent experienced investors seeking exposure to the crypto markets through regulated investment vehicles.
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