Bitcoin Spot Investment Products in U.S. Reach Record Weekly Inflows of $2.9 billion
Summary:
U.S. Bitcoin (BTC) spot investment products hit a new weekly inflow record of $2.9 billion, according to a report by digital asset investment firm CoinShares. The company now manages $74.61 billion worth of Bitcoin assets, with these products accounting for 97% of the total capital influx. However, Ether (ETH) and other altcoin investment products have seen relatively little interest, paling in comparison to Bitcoin. Despite record ETF inflows, Bitcoin's price has seen a 7% decrease over the past week. Outside the U.S., there have been notable outflows from the cryptocurrency exchange products, with German, Canadian, and Swedish exchanges losing $738 million from Bitcoin exchange-traded products.
A fresh record of weekly investments has been identified for Bitcoin (BTC) spot investment products in the U.S., with the influx of new funds hitting $2.9 billion. CoinShares, a digital asset investment firm, reported on March 18 that, so far this year, these types of products including spot Bitcoin ETFs, have seen a capital influx of $13.2 billion. The company now has custody of Bitcoin assets worth $74.61 billion. These Bitcoin-centered products were responsible for 97% of the total influx. Analyst James Butterfill from CoinShares highlighted that their digital asset investment products encountered record-breaking weekly inflows of $2.9 billion, surpassing the previous record of $2.7 billion from the week before.
Interestingly, Ether (ETH) and various other altcoin investment ventures haven't garnered the same level of interest from investors, as their combined inflows barely reach a fraction of what has been invested in Bitcoin through the year. Moreover, despite record inflow levels in ETFs, Bitcoin's price has seen a drop of 7% within the past week, currently sitting at $67,418 at the time this statement was made.
Beyond U.S. boundaries, cryptocurrency exchange products have experienced significant outflows, with $738 million being withdrawn from Bitcoin exchange-traded products on exchanges based in Germany, Canada, and Sweden. Part of this has been diverted to their U.S. equivalents. U.S. Bitcoin ETFs charge an incredibly low 0% on part of their inflows, a stark contrast to the upwards of 1% per annum charged in managing fees. Since being given the green light by the Securities and Exchange Commission in January, U.S. Bitcoin ETFs have reaped over 80% of the market share in spot Bitcoin ETFs.
This heightened interest in Bitcoin ETFs has caused financial regulators such as the U.K.'s Financial Conduct Authority (FCA) and Hong Kong's Securities and Futures Commission (SFC) to ease their outlook on these products. On March 11, the FCA stated that it won't challenge any Recognised Investment Exchanges (RIEs)'s desire to introduce a U.K. listed market segment for cryptoasset-backed Exchange Traded Notes. Equally, the SFC received its first application for a spot Bitcoin ETF on January 29.
Published At
3/18/2024 10:16:51 PM
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