Bitcoin Institutional Investment Vehicles Witness Over $1 Billion Inflow in Two Months
Summary:
Institutional investment vehicles for Bitcoin have seen over $1 billion in new inflows in the past two months. The anticipation over the potential approval of the United States' first spot exchange-traded fund (ETF) has led to an increase in the price of Bitcoin, Ether (ETH), and several major altcoins. With the yearly inflows at US$1.14bn, this marks the third-highest annual inflow record. There's also a notable increase in funds allocated to crypto investment products, marking a rise in investment interest and adoption.
Over the past two months, institutional investment vehicles for Bitcoin (BTC) have witnessed fresh inflows exceeding $1 billion. In its most recent report on November 13, CoinShares, the cryptocurrency asset management firm, further propagated the idea that Bitcoin and alternative coins are once again drawing capital.
Since the start of the year, assets under management (AUM) for crypto exchange-traded products (ETPs) have almost doubled, seeing a near 10% boost in the last week itself. Bitcoin, Ether (ETH), and several key alternative coins are experiencing price enhancements, fueled by the anticipation around the approval of the United States' premier spot exchange-traded fund (ETF).
The total crypto market cap has increased by $600 billion since November 2022, according to data from TradingView. The previous two months, however, have seen a significant surge in funds allocated to crypto investment products, as asserted by CoinShares.
"Over the past seven weeks, digital asset investments garnered inflows of US$293 million, pushing the total inflows beyond the US$1 billion mark. This leaves the year-to-date inflows at USD 1.14 billion, marking the third highest annual inflow record," the firm stated.
"At US$44.3 billion, the total AUM is now the highest it's been since the significant crypto fund failures in May 2022," they disclosed further. The report also mentioned that a majority of the funds went towards backing Bitcoin.
Examining the renewed interest, Glassnode, an on-chain analytics firm, re-evaluated Bitcoin supply dynamics. With only five months until the next Bitcoin supply halving event, the amount of BTC being squirreled away far exceeds the amount of newly minted coins.
Philip Swift, creator of the statistics platform Look Into Bitcoin, expressed enthusiasm over the increasing number of wallet holders. "This is what adoption looks like," he informed his subscribers.
This article should not be considered investment advice or a recommendation. Investing and trading carry inherent risks, and readers are advised to conduct thorough research before making any financial decisions.
Published At
11/13/2023 2:35:50 PM
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