Cryptocurrency Funds See $103 Million Inflows as Institutional Investors Eye Bitcoin ETF Approval
In the penultimate week of the year, cryptocurrency funds experienced inflows of $103 million, indicating continued momentum from institutional investors towards the approval of a spot Bitcoin ETF by the Securities and Exchange Commission (SEC).
Massive Inflows into Digital Asset Investment Products
Data from CoinShares reveals significant inflows into digital asset investment products in the past seven days, with both Bitcoin (BTC) and altcoins showing positive performance. After experiencing outflows of $16 million the previous week, bulls are now looking to build on the positive momentum gained earlier this month.
Total Weekly Inflows and Assets Under Management
The total weekly inflows reached $103 million, while assets under management (AUM) currently stand slightly above $52 billion. This increase can be attributed to increased on-chain activity and decentralized finance (DeFi) activity in the market.
Bitcoin Dominates Inflows
Bitcoin attracted the majority of inflows, accounting for $87.6 million or 85% of the total weekly positive movements. Institutional investors have shown a preference for BTC in recent weeks due to several key factors.
Anticipation of a Spot Bitcoin ETF Approval
The anticipation of a spot Bitcoin ETF has attracted more investment to the sector. Wealth managers predict a potential approval in the near future based on recent filings, edits, and court victories. The introduction of a spot BTC ETF is expected to bring about a new financial cycle in the market.
Recovery from 2022 Market Downturn
After a challenging 2022 that saw Bitcoin’s price decline by over 55%, this year has seen a recovery and increased exposure by investors. BTC’s price has risen by 16% in the past 30 days and over 155% in the last 12 months, reaching $43,477 at the time of writing.
Upcoming Halving and Price Surge Expectations
The upcoming halving event has contributed to the rise in Bitcoin’s price and institutional inflows. Miners have increased their efficiency in anticipation of the halving, which is expected to result in a regular price surge.
Altcoins Show Bullish Momentum
Altcoins have also shown positive momentum in terms of institutional products. Ethereum (ETH) recorded inflows of $7.9 million, while Solana and multi-assets attracted $6 million and $2.3 million respectively. Solana continues to perform well with increased AUM and transaction volumes.
Geographical Inflows
Germany and Canada led the way in terms of geographical inflows, with $41.6 million and $35.8 million respectively. The United States and Switzerland also saw significant inflows of $20.4 million and $15 million.
Hot Take: Institutional Investors Drive Crypto Market Growth
The recent inflows into cryptocurrency funds highlight the growing interest from institutional investors in the crypto market. With the potential approval of a spot Bitcoin ETF on the horizon, these investors are positioning themselves to benefit from future market growth. Bitcoin remains a favored asset due to its recovery from the market downturn, expectations of a price surge, and upcoming halving event. Altcoins are also attracting investment, with Ethereum and Solana showing positive performance. As institutional inflows continue to rise, the overall crypto market is poised for further growth.
By
By
By
By
By