Institutional Investors Flock Back to Crypto Assets
Institutional investors are showing renewed interest in crypto assets, with a surge in inflows into institutional-grade crypto asset funds. CoinShares, a fund manager, reported the largest weekly inflows since late 2021, reaching a record high of $346 million. This indicates a growing appetite among institutions for cryptocurrencies.
CME’s global head of cryptocurrency products, Giovanni Vicioso, noted that the increase in volume and open interest in crypto derivatives markets is a clear sign of institutions entering the space.
Total Assets Under Management Reach 18-Month High
As a result of this renewed institutional interest, total assets under management in crypto funds have reached an 18-month high of $45.3 billion, according to CoinShares. Bloomberg ETF analyst James Seyffart predicts that spot Bitcoin funds will be approved in January.
Nate Geraci, President of ETF Store, warned of potential chaos if the SEC doesn’t allow GBTC to uplist at the same time as other spot BTC ETFs launch.
Crypto-Related Equities on the Rise
Bitcoin pioneer Anthony Pompliano highlighted the increasing popularity of crypto-related equities. Investors are now venturing beyond Bitcoin and Ether into other crypto assets, indicating their willingness to take on more risk.
Hot Take: Institutional Investors Drive Crypto Market Growth
The recent influx of institutional investors into the crypto market is driving significant growth and pushing total assets under management to new highs. This trend is evident in the increased volume and open interest in crypto derivatives markets. With the potential approval of spot Bitcoin funds and the rise of crypto-related equities, it is clear that institutions are recognizing the value and potential of cryptocurrencies. As more institutional investors enter the space, it is likely to further validate and legitimize the crypto industry, leading to increased adoption and mainstream acceptance.